Tag Archives: gbpaud exchange rates

Pound to Aussie Dollar range-bound, but where to next? (Joseph Wright)

The Pound to Aussie Dollar exchange rate has been trading between 1.66 and 1.68 for a few days now, as the pair appear to have consolidated below 1.70 in the wake of the disappointing election outcome for Sterling bulls.

As of yet there is no official agreement between the Conservatives and the Democratic Unionist Party (DUP) although speculation is mounting as to the amount the Conservatives will have to pay for the coalition, with some speculating amounts of up to £2bn.

Moving forward I’m expecting any news of the coalition to have a potential impact on the Pound to Aussie Dollar buying rate, which is where keeping in touch with us can really help as we’re able to act whenever there’s a big short term move.

Brexit negotiations are now also underway, which is another issue for the government to deal with along with the ongoing Grenfell Tower tragedy and the recent terrorist issues.

On the other hand the Aussie Dollar has been under pressure in recent weeks as the Chinese economy appears to be slowing, which is a negative for the value of AUD as the Australian and Chinese economies are key trading partners.

With both currencies coming pressure for different reasons, it could be that the weaker of the two that results in further price movement for the GBP/AUD pair.

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 to Aussie Dollar exchange rate falls again, will the downward trend for the Pound continue? (Joseph Wright)

The Pound to Aussie Dollar buying rate dropped again throughout today’s trading session, with the exchange rate dropping by 0.65% throughout the day up until the time of writing.

Not only are the financial markets and investors concerned about the political situation in the UK, with the outcome of the election being one of the worse case scenarios for the UK as it resulted in a Hung Parliament, but the rising rate of Inflation and lower wage growth becoming an issue that could rise to the surface very quickly.

If the rate of inflation continues to climb but the rate of wage growth continues to decline (as figures released today showed it happening for the 3rd month in a row), I think the Pound could find itself trading at a much lower rate than we’re currently witnessing.

My reasoning behind this is because the UK consumer has been propping up the UK economy since the Brexit, which has allowed the ship to steady to an extent after all the warnings from market analysts should the UK pubic have voted to leave the EU.

Should the current trend of higher costs of living in the UK continue I think the Pound may fall as I previously mentioned, and if you would like to be kept updated regarding this matter as well as any others that can potential impact GBP to AUD exchange rates, do feel free to get in touch with me.

There’s a plethora of data due out tomorrow for the UK specifically, so feel free to contact me overnight to discuss these events and how they could impact any short term currency exchange plans you may have.

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.

Will the Tories win and what could happen to Pound vs Australian Dollar exchange rates? (Tom Holian)

We are now just a few hours away from the result of the latest general election and at the time of writing it looks as though the Tories will clinch victory.

At the moment the markets are relatively quiet in anticipation as to what may happen overnight. It is not yet clear what time we should expect the vote but we are likely to see volatility for GBPAUD exchange rates overnight.

My suspicion is that we will see a Tory victory but if the voting is close or if we even have a hung parliament this could cause big problems for the Pound overnight.

However, a Tory victory is likely to provide the markets with some certainty for the next few years and this typically results in strength for the currency involved and in this case Sterling.

As we have seen during the course of 2016 with both the Brexit vote as well as the Trump victory the market can be full of surprises and the opinion polls can be dramatically wrong causing big movements on the foreign exchange markets.

One issue longer term is that even if we do see the Tories win with a majority the boost for the Pound may be short lived as it means that the Brexit negotiations will be allowed to begin and this is likely to be a very challenging period for both British political will as well as the British economy.

Having worked in the foreign exchange industry since 2003 I am confident not only of being able to offer you bank beating exchange rates when buying or selling Australian Dollars but also help you with the timing of your transfer.

If you have a currency transfer and would like further information or a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

Pound to Aussie Dollar hits its lowest level since April as the election approaches, will the trend continue? (Joseph Wright)

The Aussie Dollar bucked the trend today and actually gained value vs the Pound during today’s trading session.

As the election polls have swung back in favour of a Conservative majority the Pound has received a boost against most currencies, as the tightening in the polls over the past few weeks has put pressure upon the Pound as is often the case during times of political uncertainty.

The Aussie Dollar managed to buck the trend as in the early hours of this morning as both quarter-on-quarter as well as year-on-year economic growth figures (GDP) came out better than expected. This data release now means that Australia has recorded 103 successive quarters of growth which is a new global record, making the Aussie Dollar strength understandable.

Despite these figures from down under I am expecting to see the Pound climb further across the board of major currency pairs (including AUD) should the Conservative party win a majority when the election result is announced this Friday.

Another potential downside to the Aussie Dollar is the likelihood of another interest rate hike in the US which would limit demand for investors to hold funds in AUD. AUD has benefited from having such a high interest rate for a nation within the developed world, and should other nations, especially those considered less high risk such as the US, begin offering a similar or higher rate we could see a sell-off in the Aussies value due to selling pressures.

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 falls against the Australian Dollar owing to opinion polls (Tom Holian)

Sterling vs the Australian Dollar has fallen at the end of this week after the latest polls showed that the vote between the Tories and the Labour party is getting much closer.

According to one poll the vote is as close as 5%. As demonstrated in 2016 opinion polls can be very wrong as we saw with both the Brexit vote and the Trump win but to me it highlights the importance of getting to the polling station and ensuring you vote for the party who you want to win.

If one party shows a huge lead in the polls it can mean complacency on the part of some voters and this could mean a difference to the expectation.

With the poll showing a much closer than expected difference this caused the Pound to fall. Typically if an existing government wins the election this results in economic certainty and this often will result in Sterling strength against all currencies including vs the Australian Dollar.

Therefore, with the change in opinion this is a big factor as to why the Pound has fallen from recent highs against the Australian Dollar and if the voting gets closer then this could potentially even see GBPAUD rates fall below 1.70 on the Interbank level.

However, in my opinion I cannot see anyone win but the Tories as shown with the recent local elections and once this happens this is likely to see GBPAUD exchange rates go back in an upwards direction.

Therefore, if you’re thinking about selling Australian Dollars then this could the opportunity you’ve been waiting for.

With less than two weeks to go if you would like to make a currency transfer and save money compared to using your own bank then why not contact me for a free quote. I work for one of the UK’s leading currency brokers and have done since 2003 so I’m confident that a quick email could save you a lot of money.

I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Why is the Australian Dollar weakening against the Pound, and will it continue? (Joseph Wright)

The Pound is trading at it’s 2017 high against multiple major currencies at the moment, with the Pound to Australian Dollar sitting at an 8-month high making the conversion of Pounds into Aussie Dollars a much more attractive proposition than it was for much of last year (after the Brexit vote).

The Pound has been slowly climbing since UK PM, Theresa May announced a snap election in June, and as the conservatives gain a more favourable position within the polls we’re seeing the value of sterling continue to climb.

At the same time the commodity currencies such as the Aussie Dollar have been struggling, as commodity prices have tumbled recently which is likely to have a knock on effect to the Aussie Dollars value as the Australian economy is negatively impacted as a result.

Just last week the price of Oil, Iron Ore and Copper all fell by 7% along with Gold which fell by 3%.

Tomorrow is likely to be a busy day for the GBP/AUD pair as a number of key data releases are due out. UK Interest Rates will be announced along with Inflation data and UK GDP, so there could be some major moves tomorrow. Feel free to get in touch if you wish to be kept updated regarding these releases.

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.

Will GBPAUD rates hit 1.80? Best rates in 8 months to buy Aussie dollars with pounds!

The overall impression for GBPAUD rates is now much more positive with sterling rising and the Australian dollar on the back foot following a series of releases which have unsettled investors attitudes to the Aussie. The general impression for the markets is that GBPAUD rates could now rise higher as the trends that have contributed to the rise from 1.59 to 1.76 continue further. I would not be ruling out rates of 1.80 in the coming weeks, it appears clients looking to sell AUD for sterling should be making plans around what could be a very volatile and choppy period.

Let us look at the situation from the perspective of clients buying Australian dollars, the rates are very good. We are at the very best rates we have seen since September of last year. The pound has been on the very weak side at the risk of falling further owing to uncertainty surrounding the Brexit. On a £200,000 transfer between the highs and lows you are today looking at an extra 33,000 AUD compared to the lower points. With the market appearing to favour if not further sterling strength then a much stronger and supported pound the general impression is that clients selling AUD to buy pounds will suffer.

Sterling could struggle in the run-up to the UK election but will for sure strengthen once Theresa May is confirmed Prime Minister. The overall viewpoint stemming from the previous elections is the pound weakens before and rise after. However this time it is a little different since the result is largely expected and will therefore be priced in to the value of sterling.

All in all I would be very concerned if I was selling Aussie dollars to buy pounds as it looks like the market has now shifted and to claw back and see rates that were on offer not so long ago come back we will need to see a big change in sentiment and the market forecasts. If you have a transfer to make then this week is vital as we have the latest news from the Bank of England which is likely to create some volatility on the market.

If you are considering any transfer involving buying or selling the pound and Australian dollar then making some plans in advance is sensible to avoid any potential surprises in the market. For more information and assistance in achieving the best rates in the market please speak to me Jonathan by emailing jmw@currencies.co.uk.

Will sour Brexit negotiations continue to weigh on the Pound? (Joseph Wright)

So far this week we’ve seen a very typical pattern of trading for the Pound against the Aussie Dollar.

Political uncertainty has been the main driver of price fluctuations for GBP exchange rates for the past year as the Brexit vote, and subsequent discussions surrounding the process of leaving the EU have continuously weighed on the Pound’s value.

At the same time Sterling has been boosted by impressive economic data during this time which has supported the Pound, so it will be interesting to see which of the two factors have the strongest bearing on GBP/AUD over time.

This week we’ve seen the same pattern continue as the Pound softened earlier this week as over the weekend the tensions between the UK and EU surfaced after the European Commission’s President Jean Claude Juncker commented that UK Prime Minister Theresa May ‘is living in another galaxy’ regarding Brexit negotiations.

Despite the Pound falling in the wake of these comments the currency has since taken a turn for the better as yesterday mornings UK Manufacturing data release came out at its highest level in 3 years. This data showed that sentiment within the UK’s manufacturing sector is going strong at the moment which has been aided by the weaker Pound.

Moving forward I expect data out of the UK to be watched closely as investors will be keen to see how the UK is performing during this crucial two-year period of negotiations.

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.

Where next for GBP/AUD? (Daniel Johnson)

Snap Election causes Sterling rally

Theresa May announced on Tuesday she would be calling a general election 8th June. Historically, a snap general election would cause the currency in question to weaken, but on this occasion the opposite has occurred. The conservatives are currently significantly ahead in the polls and are solid favourites to win the election. It was a shrewd move by the Prime minister , almost guaranteeing another term in office by timing the election when the competition is so weak.

A conservative government is considered to be positive to the UK economy and investors gained confidence following the announcement and the pound has strengthened considerably over the Australian dollar as a result.

Trade Negotiations a key factor in Sterling value

Following the triggering of article 50 the progression of trade negotiation will be crucial to the value of the pound. Theresa May has already stated the two year target could be unrealistic. A fact that Sir Ivan Rogers, the Head ambassador to the EU pointed out upon his resignation. Sir Ivan thinks it could take up to ten years. The quickest US trade deal took four years so indeed  two years was very optimistic.

Australian Property Bubble and Heavy Reliance on China

Chinese data has not been too strong of late and this could impact the Australian Dollar due to Australia’s heavy reliance on export to the Chinese. Keep a close eye Chinese data releases if you have an Aussie dollar trade pending. The property price problem echoes that of London at the moment with inflated prices around the major cities. This could cause problems for the Australian economy if the property prices outweigh an increase in the average wage. If tensions continue between the North Koreans and the Chinese this could also have a knock on effect to the Australian economy.

If  you have a currency requirement it is crucial to be in touch with an experienced broker. The timing of your trade is vital during such volatile  times, If you have an experienced broker on board he/she can keep you up to date with what is happening in the market to help you make an informed decision. Should you find our information useful and you would like me to assist with your trade I will be happy to help you personally. If you inform me of the the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the country and as such I am in a position to better virtually every competitors rate of exchange. You would also be looking at saving anything up to 4% in comparison to high street banks. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading my blog.

Testimonials – Daniel Johnson

 

Daniel Feller

Daniel Feller and his family live in Melbourne, Australia, having made the move there from the UK some years ago. Following their decision to make extensive renovations to their Australian property Daniel needed to send money from his bank account in the UK to Australia.

Why Daniel exchanged foreign currency

Daniel and his family needed to transfer Pounds to Australian Dollars and send the money from the UK to Australia to fund their house renovations. Having been recommended to use Foreign Currency Direct by a friend in Melbourne who had used the service before, Daniel got in contact. Daniel was quickly speaking with his dedicated currency broker and discussing his requirements and situation in order to help maximise his Australian Dollar return. Daniel commented, ‘My dedicated broker, Daniel Johnson explained the process really clearly, and it all sounded straightforward. I had been recommended by a friend so I knew they were trustworthy’.

With a significant amount of Australian Dollars required, some complex transactions and the timing important, Daniel was looking to get the best exchange rate at the time. ‘The service was very efficient, a quick discussion and I needed to fill in some online forms. The security process was simple and reassuring and I was very happy with the exchange rate I received’.

What Daniel had to say about the service

Following the introduction by a friend, Daniel used Foreign Currency Direct to convert his Pounds to Australian Dollars. After the transaction Daniel said, ‘It was quick and easy. Dealing with the same person throughout the process was helpful as they knew everything about my situation. I was also very impressed by the speed of the transfer to Australia!’

Will the Pound hold onto its recent gains and remain above 1.70 versus the Australian Dollar? (Joseph Wright)

The Aussie Dollar has lost quite a lot of value against the pound recently, making converting Pounds into Aussie Dollars a much more attractive proposition.

All major currencies have lost value against the Pound in recent weeks as the clarity of the Brexit plan and the snap election called by Theresa May (UK Prime Minister) have offered the UK economy some much needed certainty which has resulted in a boost the Pounds value.

Sterling is currently trading at 2017 highs against most major currency pairs, and those planning on making a Pound to Aussie transfer may wish to consider that the Aussie Dollar has been losing value against the US Dollar as well as against Sterling, which suggests to me that the currency is coming under pressure generally speaking.

It’s for this reason I’m expecting to see the Pound to Aussie exchange rate continue to climb and consolidate above 1.70, but Sterling sellers must be aware that the currency could be vulnerable should it become public that trade negotiations are going badly.

Economic data out of the UK is also becoming increasingly more important, as the currency has been driven mostly by political unfoldings for the past year whereas investors are now keen to keep a close eye out on how the UK economy is performing during these sensitive times. If you would like to be kept updated regarding these events do feel free to get in touch.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.