Tag Archives: buying australian dollars

Pound to Aussie Dollar range-bound, but where to next? (Joseph Wright)

The Pound to Aussie Dollar exchange rate has been trading between 1.66 and 1.68 for a few days now, as the pair appear to have consolidated below 1.70 in the wake of the disappointing election outcome for Sterling bulls.

As of yet there is no official agreement between the Conservatives and the Democratic Unionist Party (DUP) although speculation is mounting as to the amount the Conservatives will have to pay for the coalition, with some speculating amounts of up to £2bn.

Moving forward I’m expecting any news of the coalition to have a potential impact on the Pound to Aussie Dollar buying rate, which is where keeping in touch with us can really help as we’re able to act whenever there’s a big short term move.

Brexit negotiations are now also underway, which is another issue for the government to deal with along with the ongoing Grenfell Tower tragedy and the recent terrorist issues.

On the other hand the Aussie Dollar has been under pressure in recent weeks as the Chinese economy appears to be slowing, which is a negative for the value of AUD as the Australian and Chinese economies are key trading partners.

With both currencies coming pressure for different reasons, it could be that the weaker of the two that results in further price movement for the GBP/AUD pair.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

 

Election result causes the Pound to fall against the Australian Dollar (Tom Holian)

The Pound plummeted against the Australian Dollar on Thursday night when the initial exit polls were released. During the last 12 months polls have been inaccurate firstly being completely wrong with the Brexit vote and secondly with the Trump victory.

However, the exit polls this time round were spot on and this saw the Pound fall by 3 cents against the Australian Dollar. The market continued to see the Pound fall against the AUD during early Friday morning before stabilising by midday.

At the time of writing the Tories are looking to sort out an agreement with the DUP in order form a majority as they are still a few seats short of being able to form a majority government.

Following the previous election when we saw a hung parliament this weighed heavily on the Pound against all major currencies as the negotiations were rather protracted. This time round I think the Tories are a little more prepared so I think a deal could be reached very quickly as the DUP even on the election night suggested that they would be open to the idea.

However, although I expect the talks to go through quickly on this occasion the next problem will be just over a week away when the Brexit negotiations begin.

The suggested date is for June 19th and as we have already seen the European leaders are opposed to the Brexit and so I think they will make the negotiations as difficult as possible in order to discourage any other countries to think about leaving the European Union.

Therefore, I think we’ll see further problems coming during this month for the Pound vs the Australian Dollar.

If you would like further information about buying or selling Australian Dollars or for a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Factors impacting GBPAUD exchange rates (Dayle Littlejohn)

In recent months the Australian dollar has been losing ground against sterling for a few reasons. Firstly Iron ore prices, Australia’s largest export an a commodity that Australia heavily rely on has been falling in value. Last week Iron ore stockpiles at Chinese ports rose 1.7% to a record 134.25 million tons as of Friday, according to weekly data from Shanghai Steelhome E-Commerce Co. With reports suggestions China are having a slow down these stock piles continue to rise which in turn would have a negative impact on iron ore prices. Secondly the UK Prime Minister called for a snap election which also provided strength for the pound as a Conservative majority is likely which in turn would give the PM more power when negotiating Brexit.

However recent poor UK economic data has stopped the pound for making any further gains against the Australian dollar. The Bank of England have announced inflation is outpacing wage growth which is real problem for the UK public, however the Bank of England are not in the position to raise interest rates which would combat the inflation pressures.

Looking ahead I wouldn’t be surprised to see the Australian dollar continue to devalue as the FED are likely to raise interest rates in the upcoming months which would lead to a sell off of Australian dollars to buy US dollars and the also the problem with Iron ore is not going away. As for the UK as soon as the General Election is over Brexit negations will be in full swing.

The Bank of America Merrill Lynch Global Research have exclaimed Brexit negotiations could cause major swings for sterling exchange rates.  They told their clients they believe sterling’s good run is coming to an end. Personally I think it is impossible to predict how Brexit negotiations will unravel therefore gambling on this could go either way.

The currency company I work for has won numerous awards for exchange rates therefore it enables me to trade Australian dollars at rates better than other brokerages and high street banks. I would recommend sending an email with a brief description of your requirements and your timescales (this is very important, the length of time you have will change your options) and I will email you with my strategy and the process of using our company drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 0044 1494-787478 and ask to be put through to Dayle Littlejohn.

Will the Pound continue to make gains vs the Australian Dollar? (Tom Holian)

If you’ve been reading the articles on this site for quite some time you’ll realise that one of the biggest influences on the strength or weakness of the Australian Dollar is the relationship between the Australian and Chinese economy.

Chinese economic data has been rather mixed in recent weeks which has caused part of the weakness for the AUD vs the Pound but a slowdown in the US has also caused problems for a lot of the commodity based currencies.

The US has suggested that although there is room for an interest rate hike it will be some time before this happens so this highlights that the US economy may not be performing as well as previously thought.

With a slowdown in the US this has caused the Pound to make big gains over the last few weeks vs the Australian Dollar and the difference of £7,500 on a currency transfer of AUD$200,00 over the last month alone.

With the RBA earlier this week confirming that interest rates will be left on hold for the 9th month in a row this has also cause the AUD to weaken vs the Pound.

All in all this is good news for the Pound vs the AUD.

The UK election campaign is now in full swing and at the moment the Conservatives are winning a huge amount of seats.

With the general election due to take place on 8th June I think this will provide further support for the Pound in the weeks ahead so keep a close eye on the election campaign which is likely to provide volatility during this month.

If you would like to compare rates vs your own bank then contact me directly for a free quote and I look forward to hearing from you. A quick email could save you a lot of money when buying or selling Australian Dollars.

Tom Holian teh@currencies.co.uk

 

Will sour Brexit negotiations continue to weigh on the Pound? (Joseph Wright)

So far this week we’ve seen a very typical pattern of trading for the Pound against the Aussie Dollar.

Political uncertainty has been the main driver of price fluctuations for GBP exchange rates for the past year as the Brexit vote, and subsequent discussions surrounding the process of leaving the EU have continuously weighed on the Pound’s value.

At the same time Sterling has been boosted by impressive economic data during this time which has supported the Pound, so it will be interesting to see which of the two factors have the strongest bearing on GBP/AUD over time.

This week we’ve seen the same pattern continue as the Pound softened earlier this week as over the weekend the tensions between the UK and EU surfaced after the European Commission’s President Jean Claude Juncker commented that UK Prime Minister Theresa May ‘is living in another galaxy’ regarding Brexit negotiations.

Despite the Pound falling in the wake of these comments the currency has since taken a turn for the better as yesterday mornings UK Manufacturing data release came out at its highest level in 3 years. This data showed that sentiment within the UK’s manufacturing sector is going strong at the moment which has been aided by the weaker Pound.

Moving forward I expect data out of the UK to be watched closely as investors will be keen to see how the UK is performing during this crucial two-year period of negotiations.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Pound to Aussie Dollar rate hits a new 2017 high as inflation data disappoints, will the trend continue? (Joseph Wright)

The Pound has hit a new high against the Aussie Dollar today, as the pair have hit 1.7220 at one stage during today’s trading session.

The upward movement for the Pound begun early mostly due to Aussie Dollar weakness, as in the early hours of this morning the Australian inflation data came out worse than expected on both an annual and monthly basis albeit not drastically.

At the same time Sterling has performed well across the board during today’s trading session and at the time of writing the currency is up against all major currency pairs.

There has been talk of the Australian economy slowing in recent months, and with the US Fed Reserve now likely to continue to raise interest rates throughout the year I think the Aussie may end up trading quite considerably lower against the Pound as the year progresses. An increasing interest rate in the US could be bad news for the Australian Dollar as its likely that investors would rather hold their funds in the US due to the higher level of security it offers.

Limited demand for the Aussie Dollar is the reason I think we could see the GBP to AUD rate improve as the year goes on, but I do think that if the conservatives in the UK don’t win the election in June we could see another sell-off for the Pound.

If you are planning to make a currency exchange involving the Pound and the Aussie Dollar, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

For how long will the GBPAUD rate remain above 1.70?

The pound to Australian dollar rate has risen above 1.70 which is presenting an excellent short term opportunity for clients with an Australian dollar buying requirement in the future. Sterling is potentially about to hit a brick wall with the UK elections but more worrying might be the likelihood of an interest rate cut in Australia. Next week is the RBA Interest Rate decision which could see a much weaker Aussie dollar so if you have Aussies to sell next week might be something to avoid!

I am expecting a very busy period in the next two weeks on GBPAUD exchange rates as investors get close to understanding just what the RBA (Reserve Bank of Australia) plan in the future for their interest rates. Whilst unlikely they will actually make a cut there is a real chance the RBA will be looking to see a weaker Australian dollar and if there remain concerns over the economy, particularly jobs, the RBA will want to cut sooner than later.

Overall levels to buy Australian dollars are now much higher than many believed a few weeks ago. The shock announcement of the snap UK General Election has seen the pound rise but this is unlikely to last too long. Typically a General Election leads to market uncertainty which can see a currency weaker. I have worked in this industry for almost ten years and this will be the third General Election I have seen. The last two both saw a weaker pound in the run-up to the vote which might be an opportunity for clients selling Australian dollars to buy the pound.

If you have a transaction in the coming weeks and months then making some plans sooner rather than later is the best way to navigate the uncertainty and volatility we are likely to experience. For more information at no cost or obligation please do feel free to get in touch to get an overview of the market and all of your options. Please email jmw@currencies.co.uk to learn more about the market and all of your options.

Will the Pound to Australian Dollar rate rise now that Brexit is underway? (Joseph Wright)

With Brexit underway and the UK having up until the 29th of March 2019 to arrange trade agreements, the pressure on the Pound appears to have eased.

The Pound to Australian Dollar rate hit its highest level on Tuesday afternoon which was just below 1.65, and I think if the Pound manages to break above this level and consolidate above 1.65 we could see the GBP/AUD climb back up to the 1.70 level.

While the political uncertainty surrounding the UK has previously weighed on Sterling’s value as is often the case in these times, the invoking of Article 50 has given the Pound a boost against most major currency pairs. Couple this with the limited demand for AUD as the US has recently hiked interest rates and plans to a number of times this year, I’m expecting to see the Pound climb over the medium to long term versus the Aussie Dollar unless trade negotiations hit a standstill.

Later this morning there will be an important economic news release in the form of Services PMI. This offers us an insight into market sentiment within the services sector which is a key driver for the UK economy. Expect any deviations from the expected figure of 53.5 to create movement between GBP exchange rates and feel free to get in touch if you wish to plan around this or any other key data releases.

There are tools available to our clients to help them trade at higher levels than currently available, such as Limit Orders. If you’re planning a currency exchange between the Pound and the Aussie Dollar its worth getting in touch to discuss these types of options as well as our commercial level exchange rates as we may be able to save you a considerable amount of money, especially when compared with the typical bank.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

Buying Australian Dollar rates once again recover from their low 1.60 threshold (Joshua Privett)

Pound to Australian Dollar exchange rates saw a visible acceleration and rise towards the end of the week, ending what had been a tentative period for buying Australian Dollar rates, with GBP/AUD knocking for the 4th time in 6 months on the door below 1.60.

Whilst the Pound had been back-tracking against the Australian Dollar in the run-up to Article 50, the overall reaction to the announcement of the beginning of negotiations and the European response was fairly positive.

Questions heading into Friday and the official European reaction to triggering Article 50 was rife. What tone were they going to respond with? Will their negotiation aims be similar to our own? Will they allow us to negotiate on future trade relations concurrently with negotiations on leaving the EU?

The overall tone was largely accommodating and, crucial to currency markets, the EU council left room for negotiations on future trade relations to begin before we have officially left the EU – allowing the potential for the UK to leave the EU on a better footing.

So what does this mean for the Pound and buying Australian Dollar rates of exchange? Very likely at this point, with negotiations not beginning for another month or so formally, that Brexit discussions will fade into the background for the medium term.

At this point, Economic news seems to be the key determinant on Pound to Australian Dollar rates. UK, US and Australian interest rate decisions are on the debate table this month. All interconnected in deciding whether GBP/AUD will break out of its current mooring in the 1.60’s.

Trends from economic date can emerge quickly to begin the month, and, as such, a premium will be put on being an informed purchaser in these situations, and being in a position to move quickly to seize any potential opportunities that emerge, even if only for a short time.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on  jjp@currencies.co.uk  in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

Pound to Australian Dollar close to 2 month high (Tom Holian)

Pound to Australian Dollar exchange rates have seen a big increase since Prime Minister Theresa May announced the triggering of Article 50 on Wednesday.

It was feared that Article 50 could cause the Pound to plummet against the Australian Dollar but it appears as though the announcement was fully priced in and this has caused the Pound to make a gain of 3% against the Australian Dollar during the week. Good news if you’re looking to send money to Australia.

The focus will now turn back to what is happening in the economies both here in the UK and Australia.

This morning we saw UK GDP figures come out in line with expectation for quarter on quarter at 0.7% which means there has been little negative Brexit effect and the UK economy has remained on track.

Next week the Reserve Bank of Australia meet to discuss their latest monetary policy decision and whether they will amend their current interest rate.

The expectation is for no change and this could see Sterling improve against the Australian Dollar as confidence begins to return to the Pound.

Therefore, if you’re considering buying Australian Dollars with Sterling it may be worth seeing what happens on Tuesday.

Prior to the interest rate decision there is a huge amount of data due out including Trade Balance, Import and Export data and this is likely to determine the decision made by the RBA.

Working for one of the UK’s leading currency brokers I am confident that I can offer you bank beating exchange rates as well as helping you with the timing of your transfer.

If you have a currency transfer involving buying or selling Australian Dollars and would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk