Tag Archives: gbpaud exchange rate
Australian Dollar affected by Cyprus News (Tom Holian)
The GBPAUD exchange rate has improved overnight as news from Cyprus filtered through the fx. Over the weekend the IMF and EU has put plans in place for bank customers to pay a levy of €10bn. The levy means a charge of 9.9% of accounts overs €100,000 and 6.75% on anything below. This has caused equity markets worldwide to fall and this could possibly have a negative affect on the Australian Dollar. My thoughts are that as the AUD is seen as a more riskier currency investors may shy away in the short term pushing rates back up for Sterling Aussie.
Tomorrow the Reserve Bank of Australia is due to publish minutes from their latest policy meeting. I don’t think the news will come as a surprise so it’s unlikely that this will affect exchange rates.
The UK Budget is due on Wednesday and all eyes will be on what Chancellor George Osborne has to say. Many analysts are hoping for promises of growth so if the Chancellor delivers we could see GBPAUD exchange rise off the back of this news. With the Cypriot news due to dominate the headlines this week I think Sterling will be the main benefactor and we could see rates improve.
If you would like to be kept updated with advantageous AUD exchange rates please email me directly Tom Holian teh@currencies.co.uk quoting ‘CURRENCY SPIKE ALERT’ in the title of your email with a brief description of your currency requirement and I look forward to hearing from you.
GBPAUD Rates affected by UK’s export led recovery (Tom Holian)
With the MPC minutes out last Wednesday showing that 3 of the 9 members voting for further QE Sterling has continued to fall against the Australian Dollar. Mervyn King was one of the advocates of further QE so to me it’s only a matter of time before the Bank of England prints more money.
When Sterling vs Euro almost hit parity a few years ago the UK’s economic climate was very similar with GDP very low. Therefore, a weak Pound helped to aid the UK’s recovery by allowing exports to become cheaper. The same signs seem to be happening at the moment which is why we could see further losses for Sterling before things start to improve.
The US published some very strong figures which has meant investor confidence has returned and therefore a bigger attraction to invest in higher risk currencies including the Aussie Dollar. GBPAUD exchange rates are trading in the 1.47 region and my feeling is that today we could see further losses.
US Home Sales and Construction were up which is a big sign that confidence is returning to the world’s biggest economy. Bernanke spoke earlier this evening and said there may be room for further QE in the US which could help to stabilise the economy.
For up to date information as to what is happening with AUD exchange rates then feel free to contact me directly via email Tom Holian teh@currencies.co.uk
Australian Dollar Strengthens following comments from ECB President Mario Draghi
The GBPAUD exchange rate dropped from its recent 12 week highs as comments made by ECB President Mario Draghi gave rise to further appetite for riskier currencies again. He pledged to buy potentially an unlimited supply of Euro zone government bonds in an attempt to stabilise the Euro zone and the currency itself. This led to a huge positive movement for global stock indices including banking shares which welcomed the positive comments. The ECB will in theory buy as many government bonds necessary in order to reduce bond yields which has stifled the Euro zone economy recently. This should make borrowing less expensive and easier to do. Short term 3 year bonds have initially been targeted but his has also brought down the cost of longer term borrowing again positive for the Euro. Further, this is not solely aimed at Spain and Italy but also other countries which have received bailouts since the crisis began.
However, the bond buying process also means that the countries involved will still need to adhere to the austerity measures required by the ECB. This means unfort8unately that the plan is still subject political will on behalf of the project so all it not as positive as things may first appear. The recent comments have certainly buoyed the Australian Dollar which has strengthened by 3% in as many days coming as an unwelcome surprise to those needing to buy Australian Dollars.
The news from China out this morning was relatively disappointing but owing to teh stability back ion Europe this has meant investors choosing to buy Australian Dollars and this is likely to continue for the next couple of days. if you have a currency requirement to exchange Australian Dollars and want to ensure you’re getting the best exchange rate for your currency transfer it is important to deal with a currency specialist. If you have any questions please feel free to email me directly Tom Holian teh@currencies.co.uk
UK Recession worse than expected causing Sterling losses
The GBPAUD exchange rate has dropped this morning by 0.75% since the announcement of the UK GDP figures. The data showed that output in the UK has declined by 0.7% between April and June according to the ONS. This is the third quarter in a row that this has happened. The first three months saw a drop of 0.3% so we could be in for a troubled period for the UK economy and Sterling. According to Alan Clarke from Scotiabank ‘this is a disaster for UK growth…and on average for the year, it’s looking very unlikely that we’ll be on the right side of zero growth. more likely we’ll be contracting.’
If we look at the currency markets it seem apparent that the data release was not full priced in as GBPEUR, GBPAUD & GBPNZD have all dropped this morning following the ONS official data. This movement highlights the volatility of the currency markets and the importance that you stay in contact with your experienced currency broker who can alert you when the markets move quickly. You can also utilise a currency broker to help you gain better exchange rates than your bank and help you with various tools such as Stops & Limits and Forward contracts which allow you to fix a rate up to two years in advance if required.
The Forward contract is particularly useful for those clients looking to emigrate which can sometimes take a long period of time before your official visa is granted. Therefore, you may wish to buy forward to know how much your money will buy. For further information as to how to save money when buying Australian Dollars or any other of the 35 currencies we trade please do not hesitate to contact me Tom Holian teh@currencies.co.uk
Why Hindsight Would Have Made us Millionaires?
GBPAUD AUDGBP USDAUD AUDUSD Converting Australian Dollars Exchange Rate Forecast Moving Money to Australia Sending Australian Dollars GBP to AUD Best Rates
The Australian Dollar has surpassed expectation on numerous occasions in the past twelve months and may well have benefited more than any other currency since the start of the global economic downturn. History suggests that it was a currency considered too risky by investors in times of global economic uncertainty and would have been pigeonholed with the ZAR, NZD and CAD as currencies to avoid when times got tough. This is why the one thing you can be sure of is that in the currency markets, there is no such thing as certainty.
Whilst the AUD is not quite sitting at the 30 year high against GBP that it had experienced at the start of 2012, it has still surpassed expectation ten times over. Just to put it in perspective, when this particular blogger went travelling ten years ago, I remember getting 2.6 AUD to 1 GBP and the general feeling then was that 2 AUD to 1 GBP was still nothing more than fiction. In fact if you had told Joe public back then that in 2012 the AUD would at its height, surpass the USD, I think you would have been laughed out of Sydney quicker than if you had predicted a double England Ashes success.
The Australian economy has benefited hugely from the demand in China for its raw materials. China is now considered the second largest global economy and has relied hugely on Australia’s mining sector to fuel this growth. Australia is rich in Gold, Silver, Copper, Iron Ore and Uranium amongst others and it is the export of these materials, along with an increase in skilled immigration that is helping to push its economy and ultimately its currency to new levels.
With the current problems in Europe causing global uncertainty and the UK back in recession the AUD may well continue to surpass expectation for years to come.
If you have an upcoming AUD currency transfer to make, or would like to be kept up to date with market movements down under, then please contact me directly at mtv@currencies.co.uk or on 01494 787 478.
AUD Weakens after RBA Meeting
Australian interest rates were kept on hold yesterday although the minutes proved rather dovish. Fears are for economic growth and less concern is being placed on inflation. Australia also showed a trade deficit of AUD$480mn against expectation. GBPAUD exchange rate is now expected by many to hit 1.55 over the next few days. The next meeting we could see an interest rate cut in May even though rates were kept on hold. This has made the country less attractive to international investors and put pressure on the AUD against the USD and Sterling.
The US FOMC minutes published last night showed that they are moving away from added monetary stimulus. Moving forward this could see further strengthening for the USD vs AUD so if you need to move currency between Australia and the UK or US then feel free to ask me a question about the process of obtaining competitive exchange rates when transferring currency. Tom Holian teh@currencies.co.uk
MPC Minutes show 7-2 in favour of £50bn Quantitative Easing
At 930am this morning the MPC announced that 7 members voted for further QE of £50bn and two further members wanted an increase to £75bn. This has sent Sterling Exchange rates tumbling across the board but they haven’t dropped as much as expected against the Australian Dollar. At the time of writing the GBPAUD exchange rate has only fallen 0.3% compared to the previous day close which indicates that Australia may have more concerns over the Greek bailout which has seemingly dominated the headlines over the last few weeks. For more up to date information feel free to email me Tom Holian teh@currencies.co.uk
