Tag Archives: gbpaud exchange rates

Pound gains vs the Australian Dollar after uncertain RBA minutes (Tom Holian)

The RBA minutes came out last night and they stated that they are concerned about wage growth after years of easy monetary policy settings allowing people to borrow money cheaply.

Australian households are currently experiencing a huge amount of debt and they are concerned especially about home owners with interest-only mortgages.

The central bank assistant governor Michel Bullock said that the risks to the current levels of debt are ‘not particularly acute’.

However, clearly there is a big concern as if interest rates are allowed to rise and wage growth doesn’t increase this could cause a big problem for homeowners with interest only mortgages. The RBA are currently keeping close tabs on the economy  and as mortgage debt is high and property prices appear to be slowing down then I think the RBA will keep interest rates on hold for quite some time to come.

This could, in the longer term, cause the Australian dollar to weaken as other economies including both the US and the UK are preparing to increase interest rates during the course of this year. The US have penciled in a rate hike for March with almost a 100% certainty of this happening whilst the UK may hike rates in May with a 75% of this happening.

This week the UK has a number of important data releases due out including GDP figures for the final quarter of 2017 tomorrow morning. Expectations are for growth of 1.5% year on year so anything different is likely to cause a lot of movement for GBPAUD exchange rates so make sure you keep a close eye out on what happens over the next few days.

If you would like to free quote when buying or selling Australian Dollars and would like to save money on exchange rates compared to using your own bank then contact me directly. Having worked in the foreign exchange industry for one of the UK’s leading currency brokers since 2003 I am confident of being able to save you money and help you with the timing of your transfer.

Feel free to email me directly with a brief description of your requirement and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Could the Pound improve against the Australian Dollar this month and possible reasons why? (Tom Holian)

The Pound has been steadily increasing against the Australian Dollar since the turn of the year and although we have seen some small losses for the Pound, generally speaking the market for anyone looking to buy Australian Dollars has been very positive.

With the US threatening to continue raising interest rates the next interest rate hike by the Fed is likely to come in March and this is in part why we have seen the Australian Dollar struggle against the Pound.

On Tuesday the latest set of minutes are due to be released by the Reserve Bank of Australia and I think this could provide the catalyst for Sterling strength against the Australian Dollar as I think the RBA will be relatively cautious in their tone.

If you look at the markets through the eyes of a global investors if you have available funds it is likely that you would look to invest in the US as with interest rates planned to be going up as well as strong growth in the world’s leading economy this could potentially be a good investment.

This could result in a sell off for riskier based currencies such as the AUD and this is why I think in the longer term that we’ll see GBPAUD exchange rates challenge 1.80 before the end of this month.

On Tuesday the UK releases the latest Quarterly Inflation Report Hearings and as inflation has continued to remain higher than the target I think this will put pressure on the Bank of England to look at raising interest rates possibly as early as May.

On Wednesday the latest UK unemployment data is due to be published and although this has been very strong one of the concerns is Average Earnings which have been lagging behind inflation so this could see a bit of volatility for GBPAUD exchange rates in the middle of the week.

If you would like to free quote when buying or selling Australian Dollars and would like to save money on exchange rates compared to using your own bank then contact me directly. Having worked in the foreign exchange industry for one of the UK’s leading currency brokers since 2003 I am confident of being able to save you money and help you with the timing of your transfer.

Feel free to email me directly with a brief description of your requirement and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Interest Rates in the UK and Australia to set the tone for GBPAUD exchange rates – Could we see GBPAUD rates move towards 1.80? (Tom Holian)

According to the Reserve Bank of Australia interest rates down under may be kept on hold for quite some time. In their most recent statement earlier this week the central bank has suggested that any change will be ‘gradual.’

The latest set of growth forecasts from the RBA will be announced on Friday and although unemployment is looking very strong in Australia there are concerns being raised that Retail Sales are struggling.

Indeed, the RBA governor Philip Lowe has said that ‘household incomes are growing slowly and debt levels are high’, which leads me to think the RBA will keep monetary policy the same until we see more positive news.

The last time we saw an interest rate hike in Australia was back in 2010 and rates have remained on hold down under now for a year and a half so don’t expect any rate changes to be coming anytime soon.

The problem for the economy in Australia is that over the years it has benefited from a higher yield in interest rates for global investors than many other developed economies.

However, with the US having increased interest rates three times during 2017 and on course to increase interest rates again in March this is leading investors to move their money away from commodity based currencies including the Australian Dollar and into the US Dollar.

Overall this is fairly good news for anyone looking to send money to Australia as it means GBPAUD exchange rates have remained positive recently and although we have seen the odd drop in rates, generally speaking the direction has been positive in Sterling’s favour.

Looking ahead to tomorrow the Bank of England are set to meet to announce their latest monetary policy decision and although no change is expected any hints of a rate hike coming further down the line to control inflation could see the Pound go in an upwards direction.

If you have a need buy or sell Australian Dollars in the near future then feel free 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

Could the RBA meeting on Tuesday be the catalyst to send GBPAUD rates up to 1.80 next week? (Tom Holian)

The Pound has maintained its recent run of good form vs the Australian Dollar during the course of the week ending Friday afternoon with the Interbank level trading at above 1.78 for GBPAUD exchange rates.

Australian inflation data came out lower than expected earlier this week and as we have seen with the UK back in November if inflation rises then the general policy is to raise interest rates.

With inflation down under falling then this means that the Reserve Bank of Australia are much less likely to be looking at raising interest rates in the near future.

On Wednesday evening the US Federal Reserve confirmed that they would be keeping interest rates on hold for the time being although the tone was rather hawkish, which means that a rate hike could be coming.

Indeed, the expectation is currently at 88% that an interest rate hike may occur in March and this is why we have seen the Australian Dollar continue to remain weak.

Global investors are currently offloading the AUD, NZD and ZAR which typically used to have very attractive yields on interest.

However, with the US looking at increasing interest rates as well as having a very strong economy as proved with Friday afternoon’s fantastic jobs report creating 200,000 new jobs in January, money is being ploughed into the US at the moment.

On Tuesday, Australia releases its latest Trade Balance Figures as well as Retail Sales and both will be key to determining what will happen to GBPAUD exchange rates during the course of next week.

The RBA will also announce its latest interest rate decision so if they are quite cautious in their approach could this send GBPAUD rates towards 1.80?

If you have a need to make a currency transfer buying or selling Australian Dollars in the near future then feel free to contact 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

Sterling remains strong despite poor data release (Joseph Wright)

The Pound has managed to hold its ground against the Aussie Dollar today, despite some disappointing data being released earlier today.

It’s emerged that the UK construction sector is relatively flat at the moment, and this is similar to the UK manufacturing sector which also saw disappointing data released recently.

Despite this, the Pound is managing to hold onto its recent gains where the currency has moved up into the later 1.70’s after spending much of last year below 1.70. This suggests to me that the Pound has consolidated at its current levels and I think that there is more of a chance of seeing the pair hit 1.80 than 1.70 recently.

I think the Pound has also been helped by Aussie Dollar weakness which has restricted AUD from regaining any ground. An interesting estimate released recently is that there are forecasts of a 20% decline in iron ore prices throughout 2018, and this comes after the commodity lost quite alot of value recently already.

The reason this is significant is because iron ore is one of Australia’s biggest exports, so therefore a drop in the commodities value is likely to result in a drop in export income for the country.

Those watching this pair should also consider that if there is more talk of a rate hike from the Bank of England in May, we could see Sterling climb even higher.

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 rises against the Australian Dollar after lower than expected Australian Inflation Data (Tom Holian)

The Pound has once again charged in an upwards direction vs the Australian Dollar breaking past 1.78 overnight.

Australian Inflation data for the final quarter of last year came out lower than expected and although the figure rose to 1.9% it came in below expected figure of 2%.

This means that the likelihood of the Reserve Bank of Australia raising interest rates at any point in the near future is severely reduced and this is why we have seen the Australian Dollar weaken against Sterling.

The CPI report also showed huge inconsistencies across the country with the cities in the east all above 2% but with Perth in the west showing a level of just 0.8% highlighting the disparity between the regions which makes things more difficult for the RBA to manage the economy effectively.

The same report also highlighted differences in the housing market from one region to another and this is why the Australia Dollar has weakened as confidence is likely to also fall down under which is good news for anyone looking to buy Australian Dollars with Sterling at the moment.

Chinese data has also been rather mixed recently and as China is the largest trading partner with Australia any lower than expected news can often have a negative impact on the value of the Australian Dollar.

We end the week with the latest Producer Price Index data from Australia and anything different could influence the rate to convert Australian Dollars so make sure you’re well prepared.

If you have a currency transfer to make and would like to save money when buying or selling Australian Dollars compared to using your own bank then feel free to contact me directly for a free quote 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 help you.

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

 

 

Will GBPAUD hit 1.80?

GBPAUD rates have retraced the steps higher taken last week when we briefly hit the 1.77 mark. GBPAUD is now back trapped between the 1.73 and 1.74 range we have occupied for much of 2018. Whilst this pairing could break higher on the better news for the Brexit I do feel there is more chance of the levels testing 1.70 and even potentially being driven back into the 1.60’s.

The most important direct news on the Australian dollar is next week’s interest rate decision which could see the RBA (Reserve Bank of Australia) dropping hints as to when they may next raise interest rates. With tremendous uncertainty over the future direction on monetary policy, there is lots of scope for movement.

The overall expectation for the pound remains that sterling is very much susceptible to future weakness as concerns build over the final outcome from the Brexit plans. As an example, we are about half-way through the Article 50 process ending 29th March 2019, and there are still many vital issues to sort out.

The pound has struggled every time there has been fresh concern over Brexit and it is very difficult to see the next stages progressing without concern. Generally speaking, any deadline for Brexit talks has been missed with late night and last minute meetings usually delivering a final ‘fudged’ and in complete agreement.

The outlook for GBPAUD to rise much higher seems limited to me, I would not be banking on big improvements but the next week will be key. If you have a transfer to make buying or selling the pound and Australian dollar in either direction, perhaps we could offer you some useful information to help maximise your transfer?

For more information on our rates and service, all at no cost or obligation, please contact me Jonathan Watson by emailing jmw@currencies.co.uk.

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

 

What can we expect next for GBPAUD exchange rates?

The pound has risen to some of the best levels against the Australian dollar since December. These levels are not far from the post Referendum high of 1.7950. If you have a transfer to consider buying or selling the pound against the Australian dollar, then making good plans in advance is wise. This currency pair could easily be over 1.80 in the next few weeks or back towards 1.70.

The pound is really driving the recent improvement as expectations over Brexit solidify, the expectation is now that the UK will be able to get some form of softer Brexit. This week at Davos we have had Angela Merkel and also Philip Hammond talking very positively about the future of Brexit, this has helped the pound to rise.

The Australian dollar could come under much interest in the coming weeks as we have the latest Australian interest rate decision. Tuesday morning 6th February sees the first Australian interest rate decision for the RBA (Reserve Bank of Australia) this year. Expectations are for the RBA to discuss their interest rate plans and some do expect a hike this year.

With the pound bound to come under pressure soon enough from a shift in tone as the reality of Brexit bites back, any clients looking to buy Australian dollars should be tracking these developments very closely. Economic data can cause exchange rates to change suddenly and sometimes by up to 1 or 2 cents. Being able to plan and manage your transfer around such improvements is key to getting the most for your money.

For more information on the latest trends and assistance securing and tracking the very best rates of exchange, please contact myself Jonathan Watson by emailing jmw@currencies.co.uk.

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

Pound hits best rate to buy Australian Dollars since early December (Tom Holian)

The Pound is now trading at its best rate to buy Australian Dollars in over a month as Sterling continues to improve against a whole host of currencies during the course of this week.

Sterling has hit pre-referendum highs against the US Dollar and is now trading at its best level to buy Euros in over nine months.

UK unemployment levels hit their best levels in over 40 years and are at their lowest levels since records began and this is one of the reasons for Sterling’s strength against the Australian Dollar.

There are still concerns that inflation is too high for the UK but Average Earnings also came out better than expected yesterday and this has also helped to increase the Pound’s value.

The two announcements yesterday were clearly very positive but tomorrow we have the latest GDP estimate for the UK and this could potentially put paid to Sterling’s recent rally against the Australian Dollar.

The over-riding factor for Sterling’s increase is that things are looking more positive concerning the topic of Brexit.

Both finance ministers from Spain and the Netherlands have suggested that they want to remain as close as possible to the UK in terms of ongoing trade and the overall tone looks to be one of togetherness rather than a ‘them and us’ situation.

Indeed, the Pound has increased by as much as 3% against the Australian Dollar in the last 4 weeks which is the difference of £3,400 on a currency transfer of AUD$200,000.

If you have a need to make a currency transfer in the near future when transferring Australian Dollars then feel free 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

 

Pound maintains its levels against the Australian Dollar after low Retail Sales (Tom Holian)

The Pound has continued to hold on against the Australian Dollar even after some alarmingly low UK Retail Sales data was published on Friday morning.

Retail Sales especially in December are an extremely important indicator of the UK economy as December is when shops try and make their most money.

With the data for December coming out at 1.4% compared to the expectation of 3% the data typically would have seen a much bigger fall in the value of Sterling. However, this highlights that investors seem to be quite happy holding the Pound at the moment.

The US Dollar has weakened to pre-Brexit levels against the Pound and Sterling has held steady against a number of currencies including vs the Australian Dollar which is good news for anyone looking to send money down under.

Indeed, China’s economy also showed signs of growth which again would typically strengthen the Aussie Dollar as China is Australia’s largest trading partner.

However, some sources have suggested that the figures are not entirely accurate as previous economic figures for the year before were inaccurate and overstated.

As we move into next week one of the most crucial days of the week will come on Wednesday when the UK releases the latest set of both Unemployment data as well as Average Earnings.

The jobs market in the UK has been going very well recently hitting the best levels in decades whilst average earnings have been struggling to stay in line with inflation so if you’re in the process of moving Australian Dollars then keep a close eye out on the data release on Wednesday.

If you have a need to make a currency transfer in the coming days, weeks or months then feel free 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.