Tag Archives: currency transfer

Strong oil prices offer the Australian Dollar a welcome boost, where to next for AUD exchange rates?

The Australian Dollar has been supported overnight, which will be a welcome relief for those hoping for a stronger Aussie Dollar as the AUD/USD pair hit an 11-month low just yesterday.

AUD exchange rates have been struggling this year as the global economy picks up and monetary policy around the world tightens. Now that the US Dollar offers a higher rate of return investors are keen to hold funds in USD as opposed to the AUD as not only do they get a better rate of return, but the USD is considered more of a safe haven currency.

GBP/AUD hit a post-Brexit vote high recently trading in the 1.85’s, although it’s since slipped from these levels and has fallen further overnight owing to AUD strength as stock prices rose and the value of oil is rising. With the Australian economy being export driven and dependent on trade with it’s nearby neighbors, this is a positive so AUD understandably gained off the back of it.

There could be a lot of movement for the Aussie Dollar against the Pound today, as there is a Bank of England meeting at midday. Although no interest change is expected, I think we could see movement if any further amendments are alluded to.

There aren’t any major data releases out of Australia before the weekend, but if you wish to discuss what events could influence the Aussie Dollars value over the next few weeks do feel free to register your interest.

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.

Factors impacting GBPAUD exchange rates up until the end of the week

Overnight China are set to release a few data releases which clients involved with an Australian dollar exchange short term, should keep a close eye on. Consumer Price Index monthly figures are set to show -0.1%, however 1% up from last month and yearly inflation is set to fall to 1.9% from 2.1%. If the numbers meet the expectation you would expect to see a slight decline for the Australian dollar.

Later tomorrow morning the UK’s interest rate decision will take centre stage, and this decision has received a fair amount of media attention. 2-3 weeks ago forecasters were predicting that there was a 85% chance of a hike and now forecasters are suggesting a 20% chance due to the slowdown in the UK economy. GDP, inflation and retails sales all dropped last month.

My personal opinion is that the pound could come under pressure after the release therefore I would purchase Australian dollars before the event and sell after.

To finish the week Australian Home Loans is set to be released. With it being well documented that there has been a slow down in the major cities, home loads is set to be released at 0.1%. A high reading is seen as positive as it means investor confidence is high and therefore properties are being purchased. 0.1% is 0.3% higher than last months figure, nevertheless it wont be seen as positive therefore I would expect this to be a non event.

If you are buying or selling Australian dollars in the future, I would strongly recommend getting in contact to discuss your requirements. 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.

AUD Forecast – RBA Predicts Australian Economic Growth to Accelerate Over the Coming Months (Matthew Vassallo)

Any clients with an upcoming AUD currency exchange to execute, would have been keeping a close eye on the latest Reserve Bank of Australia (RBA) monetary policy statement.

This was released and as expected, the central bank predicted economic growth to accelerate during 2018. They predicted Gross Domestic Product (GDP) figures to hit 3.25% by the end of this year, before peaking at 3.5% during 2019.

Despite this positive outlook they remained dovish regrading inflation levels, as they do not expect these to hit their target level until 2020. This is a key indicator that interest rates are likely to remain at the current record lows for the foreseeable future.

Despite no indication of a rate hike the AUD has performed well of late, particularly against Sterling.

GBP/AUD rates fell below 1.80 overnight and despite the Pound finding some support back above this threshold, the AUD is likely to hold its position as we head into the bank holiday weekend.

The AUD has gained over 5 cents in the past two weeks, which is equivalent to an additional £1,500 on 100,000 AUD/GBP currency exchange.

Investors will still be wary about any potential slowdown in the global markets having a negative impact on the Australian economy, which relies heavily on the export of its raw materials. Any major slowdown in this sector is likely to hit the AUD but for the time being it is the UK economy which is being viewed in a more negative light.

A poor run of economic data has dragged the Pound’s value down and given those clients with an AUD/GBP currency exchange to execute an opportunity, that seemed unlikely to occur only  a couple of weeks ago.

If you have an upcoming AUD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

Will GBPAUD fall below 1.80?

The pound to Australian dollar exchange rate could now enter a very volatile period as we get key news from both central banks in the Eurozone, United States, Australia and also the UK! This should see movement on exchange rates as the market digests any shifts or changes in monetary policy and investors shift funds around to take stock of the changes.

The pound to Australian dollar exchange rate has been rising which has seen the GBPAUD level touch some of the best rates since the Referendum 2016, this is presenting an excellent opportunity to buy the Aussie with pounds which may not last. Important economic data for the UK is tomorrow relating to GDP but what will more than likely see extensive volatility on the Aussie is global attitudes to risk sentiment.

The Australian dollar is very sensitive to global sentiments on interest rates and where the AUD had previously found itself as a very strong currency owing to its higher interest rates, the currency has lost value as other central banks become more positive about raising and indeed, do raise their interest rates.

The US interest rate is now higher than the Australian one and this has made the Australian dollar lose value against the US dollar as the US dollar becomes more attractive to hold. If you have any currency transfer buying Australian dollar the RBA (Reserve Bank of Australia) interest rate decision next week could also be a big market mover.

If you are looking to by or sell Australian dollars and wish for some insight as to what might happen in the future with any currency transfers that you will be looking to make, please feel free to speak to me Jonathan Watson by emailing me on jmw@currencies.co.uk.

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

Is the RBA’s monetary policy working, and how will this impact AUD exchange rates?

Australian interest rates have been set at 1.5% for around 20-months now. This is the longest period of time the rates have remained the same and interestingly, this is the lowest that interest rates have been in Australia.

Rates were dropped to this level back in August 2016 in order to stimulate the economy after it begun to show signs of a slowdown, and since then the RBA monthly meetings have been non-eventful. This is in stark contrast to back in 2008-2009 when the rates were changed on almost a monthly basis.

There are no changes expected for the next 6-months, which differs to the forecasts in the UK for example where the Bank of England is expected to hike rates at least once this year, with some forecasters predicting up to 4 over the next 18-months or so. The Fed Reserve in the US is pushing forward with the most aggressive monetary policy changes within the developed world, and this has negatively impacted the value of the Aussie Dollar as people are beginning to pool funds in the USD now that they can get a better return than when they hold funds in AUD.

Due to the Aussie economy not picking up much steam despite the low rates, and the RBA’s tentative approach to raising rates due to fears over an overheating house market, I think that we may see the AUD continue to lose value as the year progresses.

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.

Interest rate hikes look extremely unlikely

For the first quarter of 2018 Australian core inflation hit 1.9% and headline inflation was 0.4% down 0.6% from the final quarter of 2017. The quarterly inflation numbers support the Reserve Bank of Australia’ stance to keep interest rates on hold for the time being. Many economists are suggesting a hike for the RBA will not materalise until the summer of 2019 and I have to agree which is a problem for Australian dollar sellers.

An interest rate hike has the potential to collapse the property market as many Australian’s have 0% mortgages and others have properties that they struggle to pay for now due to property prices rising over the years. My personal opinion is that average earnings need to rise and inflation would have to become out of control before a hike materialises.

As it is Anzac day tomorrow there are no data releases to look out for tomorrow. The next batch of releases to look out for are import and export price index numbers and both are set to show a steep decline. If this is the case you would expect the Australian dollar to come under pressure further.

In regards to GBPAUD exchange rates, with exchange rates now remaining buoyant above 1.80, the golden question is what is next? UK MPs are set to meet in the house of commons on Thursday to discuss the customs union. With MPs split whether to leave and remain and the PM stating there is no choice the UK has to leave this story could put pressure on the pound.

If you are trading Australian dollars this week, month or year I would recommend emailing me with the the reason for the transfer (company goods, property purchase) and your timescales and I will response with the options available to you drl@currencies.co.uk. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage, I would strongly recommend you compare rates as I am confident I will be able to offer you additional savings with your transfer. All you need to do is email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **

 

Will the Pound continue to improve against the Australian Dollar?

Sterling is now trading close to its best level against the Australian Dollar in almost two years as the Australian economy continues to shows signs of a struggle.

Australian inflation data is released on Tuesday and this could provide us with evidence of what the RBA may need to do in terms of monetary policy in the near future.

The RBA is under pressure at the moment as it appears as though the country is split between the east and the west with the western economy showing signs of a real slowdown compared to what is happening in both Sydney and Melbourne.

With the western part of the country so entrenched in the mining industry any slowdown in China will often cause the Australian Dollar to weaken and this is in part one of the reasons for the recent period of Australian Dollar weakness.

The Australian Dollar has also been affected by the decision made in the US to continue in their course of raising interest rates. In previous years Australia has had one of the highest interest rate yields available in the developed world.

However, the US has now overtaken them and this has caused global investors to move their money away from Australia and this has seen Sterling break past 1.83 during the course of this week providing some excellent opportunities to send money down under.

With the Bank of England due to meet on 10th May I think there is a strong chance of a rate hike coming in the UK as well and this could see further strength for the Pound vs the Australian Dollar. Therefore, if you’re considering selling Australian Dollars to buy Pounds it may be worth getting things organised in the near future.

For further information about how to save money when exchanging Australian Dollars and if you’d like to save money 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

AUD Forecast – AUD Fights Back After Recent Losses (Matthew Vassallo)

Sterling came under pressure against the AUD yesterday, following the release of the latest UK inflation data.

GBP/AUD rates have fallen back towards 1.82, a dip of almost 4 cents from last week’s high.

Inflation fell to 2.5%, which was under the markets predicted market figure of 2.7%. Whilst this could be viewed as a positive in the sense that it is creeping back towards the government’s target level of 2%, it has also dampened expectations of a prospective interest rate hike by the Bank of England (BoE).

This potential rate hike had most likely  been factored in to Sterling’s value, at least to some extent by investors, as such yesterday’s data has dampened the markets expectation and as investors have sold off their Sterling positions.

Looking at the AUD and it had started to find support against the Pound around 1.85, with the realignment welcomed by any clients looking to sell AUD.

One of the main reasons the AUD has struggled of late, is due to pressure on the global markets. Generally, when there is an upturn in global growth currencies such as the AUD will prosper as investors look towards riskier assets, with generally higher interest returns. When the global markets are under pressure, investors will move their funds away from these currencies and back into safer havens such as the USD or CHF.

President Donald Trump’s recent trade tariffs are  putting a huge strain on commodity based currencies such as the AUD, which is why clients holding AUD may wish to take advantage of the current spike and remove any market risk.

If you have an upcoming AUD currency transfer to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.

Our award winning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.

Feel free to email me directly on mtv@currencies.co.uk to find out all the options available to you ahead of your currency transfer.

Pound to Australian Dollar rate trading at annual high, will the pair now climb higher? (Joseph Wright)

The exchange rate for changing Pounds into Aussie Dollars has traded within half-a-cent from its annual high today, as the almost hit 1.85 again during today’s trading session.

As many of our regular readers will be aware, sentiment surrounding the Pound has improved quite considerably recently after roughly a month ago the UK and EU Brexit negotiators came to an agreement regarding the Brexit transitional deal. This was a topic that limited the Pound’s value prior tot he agreement, as there were concerns that there would be a Hard Brexit which most likely would’ve resulted in a weaker Pound due to the shock to the UK economy.

Now that there is likely to be an interest rate hike from the Bank of England next month, sentiment is improving as the UK economy is showing signs of picking up, even if the Brexit has slowed the economy somewhat.

Moving forward, I wouldn’t be surprised to see the Pound climb from its current levels as I think AUD will continue to lose value throughout the year. Now that the Fed Reserve has begun hiking interest rates in the US, AUD is likely to lose some of its attractiveness as it will no longer be offering one of the highest interest rates within the developed world. At the same time trade tensions between the US and China are likely to limit upside for AUD in my opinion.

There are expectations that the Reserve Bank of Australia will increase interest rates to 1.75% at the end of this year, although up until this stage the RBA has been skeptical due to the overheating property market down under, particularly on the East coast. With the RBA being weary of the effects this could have on the Australian economy, I think they will leave it late before making an amendment.

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.

 

Could GBPAUD continue towards 1.90?

Since the start of the year GBPAUD exchange rates have improved by over 10 cents, and clients converting £200,000 into Australian dollars are now achieving an additional 25,ooo dollars. 

The Australian dollar continues to struggle on due to the over inflated housing market which is a reason why the Reserve Bank of Australia continue to keep interest rates on hold at 1.5%. Furthermore ‘trade wars’ between the US and China (Australia main trading partner), is causing investors to move away from risky commodity currencies such as the Australian dollar.

The pound has had a good run of late due to the UK securing a transitional deal and the Bank of England hinting that an interest rate hike is likely for June. Today the UK will release their latest average earnings numbers and on Thursday their latest inflation numbers. The consensus is for average earnings to outpace inflation for the first time in many years.

If this is the case, an interest rate hike looks almost certain and therefore I expect the pound may rise slightly against the Australian dollar. However I expect that the market has already priced in the interest rate hike in May, therefore I don’t see the pound making substantial gains.

Looking further ahead I don’t believe it’s all smiles for Australian dollar buyers. The most important element of Brexit is to be decided which is the trade talks. Over the last 18 months we have seen the pound come under pressure when a fresh round of Brexit talks begin. If you need to purchase Australian dollars short to medium term, this week could provide the best opportunity for some time to come.

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.