Tag Archives: buying australian dollars

Westpac issues warning for Australian dollar sellers (Dayle Littlejohn)

In a recent report by Westpac have warned their Australian clients that further falls could be on the horizon for the Australian dollar. Commodity prices including iron ore and coaking coal (used for making steel) have dropped 15-20% since February and this trend could continue if there is a slowdown in china like many forecasters are predicting. One of the reasons why people believe there will be a slowdown is because China appear to be entering a trade war with the US.

In other news Governor  of the Reserve Bank of Australia Philip Lowe will address the public Wednesday morning and give another overview of how the Australian economy is performing. The recent commentary from the Reserve Bank of Australia is that interest rates will remain on hold for the time being. This is another reason why forecasters are suggesting the Australian dollar could lose further value as carry traders sell off their positions and look to purchase US dollars due to the higher returns now on offer.

When buying or selling Australian dollars it’s important to analyse the other currency that you will be converting as it can have an impact on the exchange rate you receive. The key data releases to look out for around the globe are ECB Mario Draghi’s speech, US Consumer Price Index, US FOMC minutes all Wednesday afternoon and Governor of the Bank of England Mark Carney’s speech Thursday afternoon.

If you are buying or selling Australian dollars in the future, I would strongly recommend getting in contact to discuss your situation. The company I work offers a proactive service to offering economic information whilst having the ability to offer award winning exchange rates. Feel free to email me with your requirements along with the timescales you are working to and I will respond with my forecast and the process of using our company drl@currencies.co.uk.

Will the Pound improve against the Australian Dollar or be caught out by the recent bad weather?

The Pound has continued to remain strong against the Australian Dollar and although we have seen a small drop in the value of GBPAUD exchange rates I still think we could see further gains for the Pound in the long term.

The interest rate down under is now lower than that on offer in the US and this was one of the reasons for the Australian Dollar’s recent demise against the Pound.

If you’re a global investor and you’re offered a higher yield in the US, who are also showing strong signs of growth, why wouldn’t you move funds away from riskier commodity based currencies such as the AUD in favour of the USD?

The Reserve Bank of Australia has recently confirmed that interest rates will be staying the same for the time being meanwhile the Bank of England have demonstrated that they may be looking to increase interest rates in the UK in the near future.

The recent vote by the MPC was 7-2 in favour of keeping interest rates on hold and clearly there is an appetite for an interest rate increase.

UK Average Earnings have recently surpassed inflation levels and in my opinion I think this allows the central bank room to seriously consider raising rates and I think this could possibly happen next month which could give the Pound a further boost against the Australian Dollar.

On Tuesday we could see some potential movement for the Pound vs the Australian Dollar with the latest NIESR GDP estimate for the last three months. Owing to the recent bad weather in the UK I think this estimate could cause a lot of volatility so make sure you’re well prepared for the movement on GBPAUD rates.

Having worked for one of the UK’s longest established currency brokers for 15 years I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your transfer.

Please send me an email with your particular requirement and I will come back to you with a detailed response.

I look forward to hearing from you

Tom Holian teh@currencies.co.uk

Aussie Dollar boosted after positive Retail Sales data, where to next for AUD exchange rates? (Joseph Wright)

The Aussie Dollar has received a boost overnight after some positive economic data.

After disappointing in recent months Australian Retail Sales down under have rebounded and impressed during February. Retail Sales rose by 0.6% during the month after slumping in January and December.

Improving sales along with inflation are increasing the chances of a rate hike from the RBA, up from its record lows which is where interest rates currently sit.

The Pound has reached new annual highs against the Aussie Dollar in recent weeks after the Brexit transitional agreement has been arranged between the UK-EU negotiators. This positive news for the UK benefited the Pound along with increasing likelihood of a rate hike in May.

Now that the US Dollar offers a higher return than the Aussie Dollar, it’s not surprising to see the Aussie Dollar lose value as investors move deposits from AUD into the USD. Before the recent rate hikes from the FED Reserve bank in the US AUD had offered one of the highest returns in the developed world, but now that AUD is losing this competitive edge we’re seeing the currency lose value.

Early tomorrow morning there will be the release of Australian Import and Export data along with Trade Balance figures. If you’re planning a currency transfer involving AUD it can be worth setting up target rates in case the best trade levels are available in the early hours when we’re not in the office.

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.

Best rate to buy Australian Dollars since June 2016 (Tom Holian)

The Pound has risen close to EU referendum highs this week against the Australian Dollar after news that a transitional deal has been confirmed.

This has given Sterling a boost against a number of major currencies and with the EU summit due to take place if the talks go well this could see GBPAUD exchange rates continue to rise.

The Australian Dollar has also struggled in recent weeks as the chances are that we will see a number of interest rate hikes in the US during the course of this year and tonight the US Federal Reserve are due to increase interest rates, which will take them higher that in Australia.

In recent years global investors have moved money into Australia owing to the higher yield but as the US economy is improving and a series of rate hike plans are planned this has caused the Australian Dollar to weaken.

In a number of my previous articles I wrote that I thought we would see Sterling break past 1.80 during the course of this month and this has all been proved right.

The minutes from the recent Reserve Bank of Australia meeting suggested that the chances of an interest rate hike down under are very low and this in my mind has caused investors to sell the Australian Dollar in favour of the US Dollar, which has pushed GBPAUD rates in an upwards direction.

Australian unemployment figures are due overnight as well as Australian employment change data and this could cause a lot of movement overnight so make sure you keep a close eye out on what happens with this data release.

Arguably the most important event for GBPAUD rates will be the EU summit which starts tomorrow so expect a lot of volatility in the days ahead.

If you would like further information about what is happening with the Australian Dollar as well as a free quote then contact me directly and I look forward to hearing from you. The more information you provide me about your particular transfer means I can provide you with a more detailed answer.

To Holian teh@currencies.co.uk

Pound hits referendum high to buy Australian Dollars (Tom Holian)

As predicted in a number of my previous articles covering the Pound vs the Australian Dollar I did say that I thought we could see GBPAUD rates break through 1.80 this month.

During Friday’s trading session my prediction came true after the one of the RBA members Debelle suggested that Australian interest rates are likely to be kept on hold for quite some time to come.

This saw GBPAUD rates move past 1.80 creating some excellent opportunities to buy Australian Dollars with Sterling.

Indeed, the Pound had a good week against most of its counterparts in anticipation of a lot of movement during the course of next week.

On Tuesday the UK releases its latest inflation figures for year on year with the latest Consumer Price Index for February.

Inflation is currently at 2.9% which is a long way above the target of 2% so another high reading could provide support for another interest rate hike in the UK.

Indeed, interest rates were raised towards the end of 2017 following a long run of high inflation so on Tuesday this could provide further justification of another rate hike currently 75% priced in for May.

On Wednesday UK unemployment figures are due to be published which are close to the lowest since records began over 40 years ago. However, one issue is that of Average Earnings which will be announced at the same time as the jobs data. Wages are struggling to keep up with inflation so this could see a potential banana skin for the Pound.

On Thursday the Bank of England will announce their latest monetary policy and although there is almost no chance of a rate hike if there are any suggestions of this coming in the near future I expect Sterling to rise in the value against the Australian Dollar.

However, arguably the biggest impact for anyone with an Australian Dollar requirement will come on Thursday when the EU Summit takes place. At the moment the future of the UK’s relationship with the European Union is very uncertain and uncertainty often results in heightened volatility.

Therefore, if you’re concerned about what may happen it may be worth getting things organised prior to Thursday.

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

Email me directly Tom Holian teh@currencies.co.uk

 

Predictions of a higher GBP/AUD rate mount as Brexit transitional deal hopes grow (Joseph Wright)

The Pound to Australian Dollar exchange rate climbed during today’s trading session, with the pair now trading almost at the very top of the current trend.

The mid-market level for the pair hasn’t breached 1.80 in some time but the pair are currently trading in the 1.78’s, meaning that for those planning on making a GBP to AUD transfer are looking at attractive levels considering recent trading levels. I would add that the lower end of the trend is 1.60 so hopefully you can see my reasoning as to why the current levels are around the top of the market.

There are hopes that the Pound will climb further, and this week the Brexit Secretary, David Davis said that the UK ‘can live with’ a shorter transitional period which has boosted the Pound’s value along with the likelihood of UK interest rates climbing sooner than many had expected.

Analysts at Lloyd’s Bank have recently upgraded their forecasts for the Pound to Aussie Dollar rate this year. They had previously expected to see the pair trade at 1.72 at the inter-bank level although the changing tones from the Bank of England and the Reserve Bank of Australia has changed their minds, with them upgrading their views on the Pound’s potential.

There isn’t any major economic data coming out of the UK or Australia this week, so I expect the pair to be driven by politics for the remainder of the week.

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 Australian Dollar Rates and could we see 1.80? (Tom Holian)

As predicted in my recent article over the weekend I think we could see GBPAUD exchange rates challenge 1.80 during the course of this month as Sterling has made some steady gains vs the Australian Dollar in recent weeks.

In the Spring Statement delivered by Chancellor Philip Hammond he was relativity positive about the the British economy and has predicted falling inflation, less borrowing and has also upgraded projections for UK growth.

This has been taken by the market very well and this has seen Sterling increase vs the Australian Dollar during this afternoon hitting 1.7750 at the time of writing.

Good news if you’re considering buying Australian Dollars with Sterling at the moment.

The Chancellor has forecast that growth this year would hit 1.5% which is just above the target set by the Office for Budget Responsibility back in November.

Turning the focus back towards what is happening with the Australian economy at the moment tonight we see the latest release for the Westpac Consumer Confidence survey.

This has been falling recently so another pessimistic release could pile further pressure on the Australian Dollar.

Combine this with tonight’s Chinese Retail Sales data as well as Chinese Industrial Production data this could cause a lot of movement for GBPAUD exchange rates so make sure you’re prepared for a lot of movement early tomorrow morning.

Things seem to be slowly improving for the British economy and today’s Spring Statement has also supported this view which is why I think we could see the Pound hit 1.80 vs the Australian Dollar before the end of this month.

If you are in the process of either buying or selling Australian Dollar at the moment and would like further information or a free quote then contact e directly and I look forward to hearing from you. Having worked for one of the UK’s leading currency brokers for 15 years I am confident of being able to offer you better exchange rates as well as helping you with the timing of your transfer.

Email me directly with a brief explanation of your requirement and I look forward to hearing from you

Tom Holian teh@currencies.co.uk

 

The Aussie remains in the familiar ranges, what will move GBPAUD this week?

The pound to Australian dollar has been largely range bound in the last few weeks as fail to receive any new news which would trigger movement outside of the current levels. The GBPAUD rate range in the last month has been just 3 cents which whilst important is not a particularly big move for this pair.

In times of changing fortunes on the currency markets we can expect GBPAUD rates to fluctuate perhaps 5-10 cents in a busy period as the market adjusts to new news. There are many different factors which drive changes on the Aussie, including not only Australian data but also attitudes to risk in the currency markets.

As a ‘commodity currency’ the Aussie will rise and fall according to the outlook on the global economy. As a ‘higher yielding’ currency the AUD will often rise as investors park their cash there to benefit from the higher interest rates. This is in part evidenced by the news of late on the US dollar which has been rising, as the US dollar rises we have seen the Aussie weakening. Investors are shifting funds around to take stock of the changing interest rates between the currencies.

The key Australian data is focused around a speech from Governor Bullock tomorrow who is the Assistant Governor of the RBA (Reserve Bank of Australia). This could see the pound to Australian dollar rate volatile although it is unlikely we will learn much new information. The RBA rate statement from last week failed to speak much movement, it didn’t tell us anything particularly new about the potential, or lack of any Australian interest rate changes.

There is some important news from the USA this week which could change attitudes to the Aussie, but all in all we might not see GBPAUD break from the recent ranges. For me, next week is looking a bit more interesting with the latest EU Summit where Brexit will be discussed, plus we have the latest US interest rate decision.

GBPAUD and the Aussie look to remain fairly range bound for now but this could quickly change. Using this quieter time to make plans for future developments is I believe a very smart move. For many clients buying AUD with pounds we are looking to trade GBPAUD above 1.80, for the sellers, many are targeting 1 AUD = 0.6 GBP.

If you have a transfer to make and are interested to secure your currency at the best rates with the most up to date information, please feel free to contact me to discuss further. To discuss further the market and your options please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from you.

 

Aussie Dollar strengthens despite RBA’s negative comments, where to next for the Aussie Dollar (Joseph Wright)

The Aussie Dollar has surprised the markets today after performing well, despite some downbeat comments from the Reserve Bank of Australia.

those of our readers following the Australian Dollar will be aware that the currency has lost a lot of value recently, with some economists predicting that the downward trend could continue.

Although this blog tends to have a Aussie Dollar to Pound narrative quite often, it’s worth noting that AUD has lost 5% against the US Dollar since the end of January which is a substantial drop even for the commodity based currencies.

When compared with the Pound, there appears to be support for the Aussie Dollar which has so far stopped GBP/AUD going above 1.80 since the Brexit vote. On a number of occasions the pair have got close but each time there is a reversal, so it will be interesting to see the Aussie Dollar goes from here.

The Reserve Bank of Australia (RBA) warned that interest rate rises remain some way off. With the US FED Reserve hiking rates and US banks likely to offer a higher rate of return than AUD based ones soon, it’s leading many economists to predict further falls for the Australian Dollar.

Australian GDP has also been softening with the GDP (economic output) level falling below the 0.5% expectation over the past quarter.

If you would like to be notified in the event of a major market movement for the GBP/AUD pair do feel free to register your interest with me.

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.

 

Fed Interest Rate outlook could hurt the Australian Dollar (Daniel Johnson)

Inflation holds back RBA rate hike

GBP/AUD remains range bound at present. Sitting between 1.75-1.80. Recent news from the Reserve Bank of Australia (RBA) is that there is little chance of an interest rate hike this year. Inflation is the key restraint on a hike.

This could cause prolonged Australian dollar weakness as investors will moving to the green back. The US dollar is considered a safe haven currency and currently offers the same level of returns as the Aussie at 1.5%.

There are also several rate hikes expected by the Federal Reserve later in the year which again will push investors toward the US dollar and away from the Aussie which is considered a riskier currency.

It will be interesting to see how the newly appointed Fed chair, Jerome Powell will address interest rate policy. His tone will no doubt influence the markets as investors wait with baited breath for any news on rate policy moving forward. The current state of affairs does not bode well for the Australian Dollar, the one positive for Australian Dollar sellers buying sterling is the 1.80 resistance point remains intact at this point.

Iron Ore Pricing heavily influences

Regular readers will be fully aware of the influence Iron Ore prices can have on the Aussie. Australia’s primary export is Iron Ore and as such movements in Iron Ore price can affect the Australian Dollar. China is the main purchaser so if you have a trade involving the Australian Dollar it is worth keeping an eye on Chinese growth data.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker if you wish to maximise your return. If you let me know the details of your trade I will endeavour to produce a free, no obligation trading strategy for you. If you have a trade to perform I will also happily provide a free quote and I am confident our rates are among the best in the industry. I would be willing to demonstrate this in form of a comparison with any competitor. You can trade in safety knowing you are dealing with company FCA registered and one that has been trading for 16yrs. Foreign Currency Direct PLC.

If you would like my assistance I can be contacted at dcj@currencies.co.uk. Thank you for reading. Daniel Johnson