Tag Archives: gbpaud exchange rates

Weaker AUD beneficial for the Australian economy, where next?

The recent RBA, Reserve Bank of Australia Minutes showed us that the RBA view the recent weaker Australian dollar as good news for the economy in helping to support growth. Australia’s economy is heavily reliant on the sale of its raw materials globally, including to China, its major trading partner. The expectation here is that the RBA will not be in any rush to raise interest rates, they view the weaker currency as ‘good news’.

The big news for this week on the Australian dollar is Unemployment data released in the early hours of tomorrow, at 12.30 GMT. The figures are predicted to show the Unemployment rate holding steady but a lower participation rate and possibly a lower employment rate. This could see the Australian dollar weaker as it underscores the recent direction and sentiment that has weakened the currency.

This could mean the Australian dollar continues to drift lower and remain weak, particularly owing to other factors including the likelihood of Trade War issues continuing to weigh on China, its largest trading partners. Markets are concerned that the Chinese economy is struggling as a result of the trade disputes with the US and Donald Trump, this has seen some economic indicators in China reach concerning levels.

China is struggling with a slowing rate of growth and concerns over home sales, rising Inflation and also falling car sales. Other examples of anxiety include the amount of debt taken on by Chinese authorities in their pursuit of infrastructure to build their economy. All of this is painting a slightly worrying picture for the Chinese economy as the trade wars are likely to get worse and this will all put pressure on the Aussie dollar too.

If you have a transfer involving the Australian dollar into any other currency and wish for some expert insight into the trends and themes to move the market, why not get in touch with us. We are a firm of specialist FX brokers with many year’s experience in managing large volume international payments.

Thank you for reading and we hope to hear from you soon.

Jonathan Watson

jmw@currencies.co.uk

GBP/AUD hits lowest level in 10-days as Brexit issues weigh on the Pound

The Pound to Aussie Dollar exchange rate has fallen to its lowest levels of the past 10-days. This has happened after GBP/AUD hit an annual high of just over 1.87 last week, which was also the highest level since the major drop in June of 2016 when the Brexit vote outcome was announced.

Sterling had hit such high levels against AUD as hopes of a Brexit deal being agreed shortly were high. These hopes are now fading and GBP exchange rates have softened across the board of major currency pairs as it now look likely that UK and EU negotiators will not be able to agree on the terms of the Brexit deal by the EU’s deadline.

Later this week there will be an EU Summit in Brussels and the main focus is expected to be the Brexit. UK Prime Minister, Theresa May will give a speech to the EU leaders regarding her plans and the progress made so far. There will also be meeting behind closed door’s that she isn’t invited to, and depending on the outcome of the recent negotiations and the EU Summit this week I think there could be movement for the GBP to AUD rate.

The Aussie Dollar hasn’t lost a dramatic amount of value against the Pound as markets will still be holding out for a Brexit deal by November, but seeing GBP/AUD drop over the past few trading days is worth considering for those of our clients planning on making a transfer.

From the Australian side there will be Employment data out of Thursday at 1.30am UK time. If you wish to be updated in the event of a major market movement 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.

 

Outlook for Pound Sterling vs the Australian Dollar rates and could we see 1.90 before the end of this month?

The Pound vs the Australian Dollar has seen some very positive movements over the last few weeks and this has caused GBPAUD exchange rates to hit the best level to buy Australian Dollars with Pounds for over two years when the Brexit vote took place in June 2016.

The Reserve Bank of Australia has warned of the risks that the Australian economy is facing over the issue of the trade wars between the US and China and at the moment this issue is still rumbling on with no signs of dissipating.

Chinese stock markets have fallen by over 20% in the year to date and as China is such a large trading partner for Australia any signs of a slowdown can really harm the value of the Australian Dollar and this is one of the reasons for the weakness of the Australian Dollar recently.

Signs coming from the Brexit talks are that things are getting relatively close to reaching a conclusion and it appears, at least for the moment, that a deal may be reached fairly soon which has helped to support the Pound vs the Australian Dollar.

Brexit secretary Dominic Raab is due in Brussels on Monday and hopes are that he is there to try and tie up a deal but I cannot see this happening just yet.

Indeed, the EU summit will be held on Wednesday for two days and there is a hope that a deal may be reached and if so we could see a very volatile period coming up for anyone thinking about moving Sterling either to buy or sell Australian Dollars.

Following this summit there is another meeting planned for November and I think this is when a deal between both the UK and the European Union will be reached and this could give Sterling the momentum it has been looking for to continue upwards vs the Australian Dollar.

If you have a large currency exchange to carry out in the coming days, weeks or months involving Australian Dollars 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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as soon as I can.

Sterling hits 2 year high vs the Australian Dollar as Brexit talks progress (Tom Holian)

The Pound vs the Australian Dollar has now hit its best level in over two years as the Brexit talks appear to be gathering pace.

At the time of writing GBPAUD exchange rates have hit 1.85+ which is the best level since the day of the Brexit vote back in June 2016.

According to a number of different sources the Irish border issue appears to be getting closer to being resolved and we are just less than two weeks away from the EU summit due to take place on October 18th.

The main topic will clearly be what happens with the ongoing Brexit talks and with the Head of the EU Commission Jean-Claude Juncker suggesting that if a deal is not reached this month it could be concluded next month the Pound has made some huge gains against a number of major currencies including the Australian Dollar which is great news for anyone looking to send money to Australia.

Meanwhile, with the US Federal Reserve having increased interest rates to 2.25% recently the disparity between what is available in terms of interest in Australia compared to that of the US now stands at 0.75% which is the biggest difference since the Australian Dollar was launched over thirty years ago.

In recent years the Australian Dollar has been the benefactor of higher interest rates compared to that available in many other western economies but with interest rates now higher in the US and also showing US GDP at 4% then global investors appear to be bypassing the Australian Dollar at the moment.

Indeed, the ongoing Trade Wars between the US and China do not appear to be slowing down and as China is Australia’s biggest trading partner any negative news will often affect the Australian Dollar and this is another reason for the GBPAUD exchange rate moving in an upwards direction at the moment.

I think a deal is fairly close to being agreed at the moment and if and when this happens I think it will provide the UK with some certainty going forward allowing the economy to know what to expect and I think this is why we could see GBPAUD exchange rates continue to go up if the talks progress positively in the next fortnight.

If you have a currency transfer to make and would like to save money when converting Australian Dollars compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.

Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident that I can also help you with the timing of your transfer.

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

Price changes for GBP/AUD likely to be driven by the Pound over the next 24-hours

Those of our clients and regular readers following the Pound to Australian Dollar exchange rate should pay close attention to UK politics today, as I believe the next spike in the GBP/AUD’s value is likely to be driven by UK politics.

Yesterday all eyes were on Boris Johnson’s speech at the Conservative Party Conference, and he didn’t disappoint as he gave another harsh critique of the ‘Chequers plan’ devised by the current UK Prime Minister, Theresa May. Today there could be movement for Sterling exchange rates against all major currency pairs as it’s the final day of the Conservative Party Conference, and Theresa May is scheduled to speak with Brexit being the main focus.

Yesterday Boris Johnson was supportive of May’s leadership but he once again urged her to move away from the Chequers plan she has devised and suggested that she focuses more on a Canadian style deal. I expect her to be questioned on his comments and the markets to follow her responses closely. With Brexit now just around the corner and expectations of a deal being in place by November, I expect to see Brexit headlines dominate financial media and for it to be the main driver of the Pound to Aussie Dollar exchange rate.

On the Australian side we’ve seen the currency soften over the past year, mostly owing to Aussie Dollar weakness. The greater the gap between US and Australian exchange rates the more likely this trend will continue, so those following the strength of the Aussie Dollar should also pay attention to US monetary policy and this is something we can help our readers with should they wish.

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.

Brexit Clarity could cause further gains for Sterling against AUD. (Daniel Johnson)

GBP/AUD – We have seen Sterling strengthen over the Australian Dollar of late, breaching the 1.80 resistance point and remaining above it. One of the main catalysts is positive news on Brexit. Chief EU Negotiator, Michel Barnier stated recently that he believes it is realistic that a Brexit deal could be in place in 6-8 weeks. It has also been revealed that there maybe a solution to the Irish border. There maybe the opportunity to use technology to solve the problem using barcodes on shipping containers to verify where goods have come from and where they are going to.

The Australian economy does have it’s own worries however. Australia is heavily reliant on China purchasing it’s exports, with China engaged in a trade war with the US this will hit Chinese growth which in turn will hit the Australian economy. With global economic uncertainty causing investors to seek safer haven investments the Australian Dollar is not as popular as it once was. The US Dollar is the destination of choice offering the highest 10yr bond yields for several years and there is the prospect of further rate hikes from the Federal Reserve this year.

There is also problems with consumer spending. High wage growth areas are becoming increasingly more expensive which is forcing Australian’s to spend there funds on necessities rather than luxury goods.

I feel Sterling could be set for further gains against the Aussie, but be wary as Brexit talks intensify we could see volatility. If you are buying the Aussie short term aim for high 1.83s, possibly 1.84. I feel 1.85 will be difficult to breach unless we receive firm news on Brexit.

If you have a pending currency transfer let me know the details of your trade I will endeavour to assist. There is no obligation to trade by asking for my help, I will provide a free trading strategy to suit your individual needs. If you do wish to try our service you can trade in the knowledge we are a no risk entity, as we do not speculate. Foreign Currency Direct PLC has been in business for over 16yrs and we are registered with the FCA. If you already use a provider I can perform a comparison within minutes and I am confident I will demonstrate a considerable saving. I can be contacted at dcj@currencies.co.uk.

Could we see further gains for Sterling against the Aussie ? (Daniel Johnson)

GBP/AUD – Sterling has made gains against the Aussie of late following a statement from chief Brexit negotiator for the EU, Michel Barnier. Barnier said that it is realistic that a Brexit deal could be in place in 6-8 weeks. Following the announcement we have seen GBP/AUD hit 1.83.

There are also concerns from down under which was another catalyst for the Spike.  Australia is heavily reliant on China purchasing it’s exports and if there is an impact to the Chinese economy it can have repercussions on Australia. The ongoing trade war between China and the US is an example of this.

China have vowed to match the US Dollar for Dollar on tariffs and both sides are preparing further tariffs. As the war escalates investor confidence in the Australian Dollar is waning. During times of global economic uncertainty investors seek out safe haven investments with solid returns.

The US Dollar is the destination of choice, 10yr bond yields are currently the highest for years and there are also expected to be further rate hikes by the Federal Reserve this year.

There is also the problem of living costs. Many seek to live in high wage growth  areas such as Sydney or Melbourne. Housing prices in these area are proving overly expensive and Australians are being forced to spend their hard earned money on necessities rather than luxury goods which is hurting the Aussie.

Although the lack of Brexit progress is holding back the pound I think the Aussie is one of the few major currencies we could see further gains.

If you have a currency requirement I would be happy to assist. If you wish to maximise your return it is important to be in touch with an experienced broker. If you let me know the details of your trade I will endeavour to produce a trading strategy to suit your needs. If you have a currency provider in place I am willing to perform a live comparison and I am confident I will be able to demonstrate a considerable saving. It will only take a couple of minutes and could be well worth your while.
You can trade in safety knowing your trading with Foreign Currency Direct PLC, a company trading for over 16 years. Our accounts are published online at companies house and we are FCA registered.

If you would like my help I can be contacted at dcj@currencies.co.uk. I look forward to hearing from you.

Could we see further gains for the Pound vs the Australian Dollar this week? (Tom Holian)

The Pound has continued to improve against the Australian Dollar creating the best level to buy Australian Dollars with Pounds since April which is a 5 month high.

The Australian Dollar has weakened owing to the ongoing threat of a trade war between the US and China and as China is such a large trading partner with Australia this is causing the Australian Dollar to weaken.

We also saw an improvement for Sterling during yesterday afternoon’s trading session following the comments made by EU Chief Brexit Negotiator Michel Barnier who suggested that a deal could be in place in the next 6-8 weeks.

However, as we saw what happened last week with GBPAUD exchange rates the comments sent the market up quickly but it then fell shortly afterwards.

Ultimately, the rate to buy Australian Dollars with Sterling is likely to be dominated in the next few weeks with the ongoing Brexit talks but the Trade Wars between the US and China are also causing big problems for the Australian Dollar.

Indeed, the US has threatened to impose further tariffs and have claimed they are ready to go and with China suggesting they may try to match the tariffs Dollar for Dollar this is clearly a big problem for global markets.

We have already seen the Pound make some huge gains vs a number of different commodity based currencies including the New Zealand Dollar and the South African Rand and with the Pound hitting 1.83+ against the AUD yesterday I think we could see further gains coming in the short term.

We have a big day coming on Thursday with Australia releasing the latest set of unemployment down under and this will be followed at midday by the latest Bank of England interest rate decision so be prepared for a volatile end to the week if you’re in the process of making a transfer involving Australian Dollars.

If you would like to save money when converting Australian Dollars compared to using your own bank then contact me directly for further information or a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Will the Australian Dollar continue to weaken, and what’s causing the weakness?

The Aussie Dollar is under pressure at the moment, with the currency hitting a 20-month low against the US Dollar earlier this week which has hit the headlines. This most recent drop off was spurred by a number of major Australian banks such as Westpac, Suncorp and Adelaide Bank have all increased their mortgage lending rates.

The ongoing saga surrounding the US and Canada’s North American Free Trade Agreement has also weighed on the Aussie Dollars value as sentiment surrounding the emerging markets has waned, after the talks between the US and Canada didn’t result in an agreement. The South African rand has also lost a lot of value recently for similar reasons.

No interest rate hikes are expected from the Reserve Bank of Australia until at least this time next year, and with US interest rates now higher than Australia’s the currency has lost a competitive edge which is another reason for the AUD weakening.

Moving forward I’m expecting to see the issues between the US and Canada as well as the issues with China to continue to weigh on the Aussie Dollar’s value. This is because of the Australian economies dependence on a strong global economy especially as the country becomes more service based.

This week there are a few further data releases that will provide us with an overview of the Australian economy, as trade Balance figures are released tomorrow and Home Loan Figures will be released on Friday.

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.

Short term opportunity to buy Australian Dollars caused by political change down under (Tom Holian)

The Australian Dollar has come under a lot of pressure recently and has been one of the only currencies to have weakened vs the Pound in recent times.

The Aussie Dollar came under pressure caused by the recent news that Scott Morrison has replaced Malcolm Turnbull as the new Australian Prime Minister.

Indeed, Turnbull became the fourth Australian leader in the last ten years to be removed from power by his own party.

An election down under must be called by next May and Morrison’s main task will be to unite the party again and to try and regain power for another term after it was suggested that Turnbull was losing his hold over the Australian electorate.

The issue for the Australia Dollar is that a currency does not often welcome a change of power as it causes a lot of uncertainty for the currency involved and this is one of the main reasons why we have seen GBPAUD exchange rates hit 1.76 last week creating some excellent opportunities to buy Australian Dollars with Pounds.

However, I think the AUD will start to fight back against the Pound very quickly as Sterling is under a lot of pressure caused by the ongoing Brexit talks which appear to be going very badly at the moment.

It appears as though we are getting nearer to a no-deal Brexit at the moment and this could be very negative for the Pound.

EU chief negotiator Michel Barnier and Brexit Secretary Dominic Raab have agreed that the Brexit talks will be going non-stop and the talks may even have the deadline extended until November rather than the original plan of finishing by October.

Therefore, if you’re planning to buy Australian Dollars then it may be worth getting this organised in the near future and take advantage of this short period of AUD weakness against the Pound.

If you would like to save money when buying or selling Australian Dollars compared to using your own bank then feel free to contact me for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk