Tag Archives: gbpaud exchange rates

Pound vs the Australian Dollar waiting to hear about the EU Withdrawal Bill (Tom Holian)

The Pound vs the Australian Dollar has crept up during today’s trading session and we could be in for a very volatile period over the next 24 hours as the House of Commons will be debating the latest EU Withdrawal Bill.

The bill was rejected previously by the House of Lords and this is the reason why it has been sent to the House of Commons for another review.

Most of the DUP have said that they will side with Theresa May but if some of the Tory back benchers go against the Prime Minister this could cause a big headache for the government and this could result in Sterling weakness against the Australian Dollar.

By the end of Wednesday and going into Thursday morning we should know the update so if you’re concerned about what may happen then it’s probably worth getting your currency organised as we could see a lot of movement on GBPAUD exchange rates over the next couple of days.

During the voting on the bill this afternoon we have seen one member resign over the Brexit talks and there has so far been a lot of in fighting between MPs.

In the morning UK inflation data is due out at 930am and we could see some market movement on Sterling vs the Australian Dollar but ultimately I think it will be the EU withdrawal bill that will cause the most movement.

If we have a positive result then we could see GBPAUD exchange rates head towards 1.80 but if not I expect the Pound to fall below 1.75.

If you have a currency transfer to make and would like to save money on exchange rates when buying or selling Australian Dollars 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

 

Australian Dollar predicted to rise as global economy picks up

The Australian Dollar has been strengthening in recent weeks, with the GBP to AUD exchange rate being a good example of how much AUD has strengthened after the rate has dropped from around 1.85 to around 1.75 over the last few months.

A number of analysts have begun to adopt a hawkish outlook for the Aussie Dollar moving forward, and the HSBC chief economist for Australia and New Zealand is the most recent key figure to share this view. His name is Paul Bloxham and he’s cited the largest increase in 6 years for the counties GDP as a key indicator as to the health of the economy.

A global pick up will benefit the Aussie Dollar due to its export driven economy, but I also think its important that our readers are aware of the importance of the countries services sector as its now more important to Australia than its mining sector.

Next week on Thursday there will be a number of key releases out of Australia, mostly covering the health of the countries employment sector. If you would like to plan around this event do feel free to register your interest with me.

The economy is likely to remain resilient in the face of trade wars breaking out, due to its close trading relationship with China. One downside though is that the RBA doesn’t plan on hiking interest rates until next year, meaning that the currency may lose some of its competitive edge.

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.

 

Is the Australian Dollars reverse in fortunes likely to continue?

The Australian Dollar is continuing to strengthen, and put in another strong performance yesterday as sentiment surrounding the Aussie Dollar appears to be turning for the better.

There is renewed hope that the coalition in Italy will pull through after it stalled over the weekend, and this is helping push the Aussie Dollar higher as it removes uncertainty from the markets to a certain extent. There cost of commodities has also increased recently which has boosted the Aussie Dollars value, as the Australian economy is highly export driven.

I also think that now the talks of a trade war between the US and China have subsided, fears surrounding the global economy have also subsided leaving the Aussie Dollar in a stronger position. The positive moves for AUD recently can be highlighted when we consider that the Pound has lost almost 10-cents vs AUD in a short space of time.

It has also emerged that the US economy isn’t growing at the rate some economists had expected, meaning that there may not be as many rate hikes in the US as some had expected. This has boosted AUD as it could means investors will be less likely to move funds from AUD into USD in order to get a greater return.

Moving forward I expect to see AUD continue to strengthen, although further rate hikes from the US Fed Reserve later in the year could impact AUD negatively.

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.

Australian Dollar strengthens but will the Pound fight back next week with unemployment and average earnings data

The Australian Dollar has made considerable ground vs Sterling recently breaking below 1.80 for the first time in a few weeks after the Bank of England chose to keep interest rates on hold with a 7-2 split.

This did not come as too much of a surprise to the markets but what has caused the Pound to weaken vs the Aussie Dollar is that the UK growth forecast have been downgraded from 1.8% to 1.4% for 2018.

This has changed since the last forecast which was released in February and this has caused the fall in value of Sterling against a number of different currencies.

Governor of the Bank of England Mark Carney did then suggest that this dip could be a ‘temporary soft patch’ and that if things improve then we could see an interest rate hike later in the year.

As we go into next week we could see a very volatile period on Tuesday as the Reserve Bank of Australia release their latest set of minutes from their previous meeting.

I think we could see the Australian Dollar come under pressure with GBPAUD exchange rates improving above 1.80 again as I think the minutes will be rather dovish, which means any interest rate hike will be well off the cards for the time being.

Interest rates in Australia are currently sitting at 1.5% and with wage growth still very slow at the moment down under I cannot foresee a rate hike in Australia during 2018 and this is why I think we could see the Australian Dollar weaken following the RBA minutes.

Later on Tuesday morning the UK will release both average earnings as well as unemployment data and both have shown positive signs recently so another positive release could see the Pound improve early next week against the Australian Dollar.

Having worked for one of the UK’s leading currency brokers for 15 years I am able to offer you bank beating exchange rates as well as helping you with the timing of your transfer when buying or selling Australian Dollars.

For a free quote then contact me directly by calling 01494787478 from Monday 830am and asking for Tom Holian when calling or email me directly with a brief description of your currency requirement and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

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.

Australian Budget News and the impact on the Australian Dollar

The Australian Budget has just been released and this is the third that Turnbull has been involved in. The budget will see a deficit of approx AUD14.5bn next year but will return to a small surplus between 2019-2010.

The Australian government also claims to have turned the corner on both the amount of debt and the deficit but for them to hit their targets this will depend on some very high forecasts.

Wages are anticipated to grow and unemployment predicted to fall whilst GDP will grow from 2.1% to 3% in the next couple of years. Wages have been stagnating in recent times but the Federal Budget is hoping that they will rise in order to help grow the economy.

One of the most interesting topics to be covered was that of tax and the general feeling is that the budget has been aimed at the middle class. The current 37% tax rate will be abolished in 2024-25 with any Australian earning anything up to AUD200,000 being taxed at 32.5% from then on.

The budget has been taken rather well down under and was aimed at keeping the voters happy and with Malcolm Turnbull due to run his full time in government this could be a year from now before the next election takes place.

As we turn the focus back to what is happening in the currency markets the next data release to impact GBPAUD exchange rates will come overnight when the Westpac Consumer Confidence survey is released.

However, arguably the biggest event of the week will likely be the Bank of England’s interest rate decision due on Thursday afternoon. The chances are that we’ll see the BoE keep rates on hold and this could see the Pound falling vs the Australian Dollar.

Having worked in the currency industry for 15 years I am confident that with my experience I am able to help you with the timing of your transfer as well as offer you bank beating exchange rates.

A small percentage of difference can be rather large depending on the size of your transfer so feel free to email me directly with your personal requirement and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Is the Australian Dollar likely to improve against the Pound during May?

The Australian Dollar appears to have gone from strength to strength vs the Pound in the last two weeks after the UK has released a string of poor economic data.

Last week UK GDP data for the first quarter of 2018 came in much lower than expected with just 0.1% growth quarter on quarter which is the slowest level since 2012 and shows signs of a real slowdown in the UK.

Only a fortnight ago average earnings had outpaced inflation for the first time in a long time and this increased the chances that the Bank of England may be gearing up for an interest rate hike on 10th May.

However, since then the negative data in the UK means that a rate hike happening next week is now highly unlikely and this is why we have seen the Pound drop against a number of currencies including the Australian Dollar.

Indeed, this is the first time in a few weeks where GBPAUD exchange rates are now trading below 1.80 on the Interbank level.

On Tuesday there is a huge amount of data due out from China and as the Chinese are the largest trading partner with Australia any data announcement can have a big effect on Australian Dollar exchange rates. We see the release of Chinese Export & Import data as well as the Trade Balance figures so if the data is positive this could mean further gains for the Australian Dollar.

In the longer term I expect the Pound to make gains vs the Australian Dollar but in the short term I think the Pound will remain under pressure.

Therefore, if you’re in the process of buying Australian Dollars in the next few weeks it may be worth getting things organised soon.

If you have a currency requirement coming up and would like further information about what is happening or for a free quote then contact me 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 bank beating exchange rates.

Tom Holian teh@currencies.co.uk

 

 

UK GDP causes the Pound to plummet vs the Australian Dollar

After hitting the best level to buy Australian Dollars with Pounds since the Brexit vote back in June 2016 the Pound has plummeted this morning after UK GDP figures came out worse than expected with the economy growing at its slowest rate in 6 years.

GDP fell to 0.1% which was lower than the expectation and showed a fall compared to the previous quarter which was 0.4%. This has now decreased the chances of an interest rate hike at next month’s Bank of England meeting due to take place on 10th May. In the last fortnight the chances were as high as 85% of a rate hike coming next month as average earnings outpaced inflation for the first time in a long time.

However, as the Bank of England are responsible for changing policy to help with both inflation and growth this poor data release has almost put paid to a rate hike at next month’s meeting and this has seen 2 cents wiped off the value of a GBPAUD trade of the difference of £1,250 on a currency transfer of AUD$200,000.

With the UK economy growing at its slowest pace since 2012 manufacturing and construction were two of the big casualties during the first quarter of this year.

Although the weather was poor and unusually cold during the first part of the year many economists have suggested that this was not too much of a factor.

We could see even further movement on the currency markets later on this afternoon when US GDP data is released at 130pm UK time. As the world’s leading economy, the announcement will often affect global attitude to risk so if you’re in the market looking to make a trade then this could be very influential for GBPAUD exchange rates.

Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident of being able to help you save money compared to using your own bank.

For further information or a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

 

 

 

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.

Could the Pound continue its recent strong run vs the Australian Dollar?

Although the Pound dipped yesterday vs the Australian Dollar after UK inflation came out slightly lower than expected the Pound has risen once against vs the AUD during today’s trading session.

UK inflation is a key factor in determining when the Bank of England may look at raising interest rates and the chances are very high that a rate hike may occur when the central bank meet again on 10th May.

Indeed, according to some reports the chances are as high as 85% of an interest rate hike.

The Pound has made a lot of gains vs the Australian Dollar over the last few months and although we saw a brief fall earlier this week I think the negative movement will be relatively short lived.

With the US having increased rates recently the US interest rates now have a higher yield than having money in Australia and this is one of the reasons why the Australian Dollar has weakened recently particularly vs the Pound.

On Tuesday, Australia releases its latest inflation data and with the RBA having announced recently that interest rates are likely to remain on hold for the foreseeable future the data release could cause a lot of movement for GBPAUD exchange rates.

On Wednesday Australia celebrates ANZAC day so expect the markets to remain quite midweek so if you’re happy with rates are on Wednesday that may be the day to make your move.

If you would like more information about buying or selling Australian Dollars and would like to save money on exchange rates compared to using your own bank then contact me directly and I look forward to hearing from you.

Having worked in the foreign exchange industry since 2003 I am confident of being able to save you money so feel free to send me an email directly with an outline of your particular requirement.

Tom Holian teh@currencies.co.uk