Tag Archives: gbpaud exchange rates

Best rate to buy Australian Dollars with Pounds since October 2018 (Tom Holian)

The Pound is now trading at its best rate to buy Australian Dollars since October with the Interbank level touching above 1.85 for a brief period of time earlier on this morning.

During this week we have seen GBPAUD exchange rates improve by as much as 5 cents or the difference of £1,600 on a currency transfer of AUD$100,000 highlighting the importance of keeping up to date with what is happening on the foreign exchange markets at the moment.

Chinese economic data has shown a slowdown with GDP coming out at 6.4%, which although very impressive this is highlighting a slow down in the world’s second largest economy.

Chinese GDP hit its lowest level in ten years earlier this week and whilst the Trade Wars with the US continue to affect China this is also another reason why the AUD is struggling

As Australia is heavily reliant on what happens with the Chinese economy this is in part a reason for the weakness in the value of the Australian Dollar.

Another reason for the weakness of the Australian Dollar comes down to the level of interest available for the investor. Last year the US Federal Reserve hiked interest rates to 2.25% and with the Australian interest rate sitting at 1.5% investors are bypassing the Australian Dollar in favour of the US Dollar for more attractive rates of return on their investment.

As we turn the focus back towards the UK it appears as though the Brexit may continue to run and run with lots of speculation that the UK will extend Article 50 rather than leave the European Union on 29th March.

Since the start of December when the previous vote was postponed the most recent vote from early last week confirmed that a majority of 230 MPs voted against the current Brexit deal on offer.

At the moment the likelihood of MPs voting through the next plan appear very unlikely and this suggests that Article 50 will have to be extended unless the UK crashes out of the European Union with a no deal Brexit and this is why the Pound has made gains vs the Australian Dollar.

Having worked in the foreign exchange industry since 2003 I am confident of being able to offer you better exchange rates than using your own bank so if you would like a free quote when buying or selling Australian Dollars then contact me directly for a free quote and I look forward to hearing form you.

Tom Holian teh@currencies.co.uk 

 

 

Will the slowdown in China put pressure on the Australian Dollars value?

The main news within the financial markets this morning is the release of 4th quarter Gross Domestic Product from China. The figure is followed closely owing to its importance, as the Chinese economy is the 2nd largest globally and GDP data measures economic output.

The figure released is 6.4% year on year in the forth quarter, and this was expected. The headlines will centre on the annual figure which is now officially 6.6% through 2018 which is the lowest figure on record since 1990, almost 30 years ago.

Now that the annual GDP figure has been released the concerns surrounding a slowing Chinese economy have been confirmed, and this could spell trouble for the global economy with economies such as Australia’s likely to feel the pinch considering the extent to which the Australian and Chinese economies are intertwined. The negative effects of the US-China trade war can now been seen so hopes of a deal being stuck will be a high as ever, and it’s likely that the talks could impact AUD exchange rates as AUD could react to US-China sentiments.

From the UK side, this afternoon could offer GBP exchange rates some direction as UK Prime Minister, Theresa May will announce the governments Plan B now that her deal hasn’t made its way through parliament. The pound has dropped off slightly at the beginning of this week which is likely due to the anticipation of what will be said later. For now, cross party discussions have come to a halt as the leader of the opposition, Jeremy Corbyn has stated that we won’t talk until a no-deal is ruled out.

I think that this afternoon’s announcement is likely to drive GBP exchange rates to begin with and that the Irish backstop will be a major talking point regarding the new plan.

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 next week’s vote on May’s Brexit deal cause movement for GBP/AUD?

The Pound has been trading within relatively thin volumes this week against most major currency pairs as the currency comes under pressure in the lead up to next week. On the 15th of this month, which is next Tuesday there will be a ‘meaningful vote’ on Prime Minister, Theresa May’s Brexit plan and much of the speculation this week revolves around that date.

The Australian Dollar, despite being the biggest loser in terms of currency throughout 2018 of the G10 countries, has actually been increasing in value over the past week as hopes of a agreement between the US and China over the trade war talks increase. There have been ongoing discussions recently between the two leading economies, and this is a positive for Australia as China is the country’s main trading partner.

So far this morning the Pound has got off to a poor start, as pressure builds in the lead up to next week’s vote, especially after the first planned vote was delayed as May was concerned of a major loss. The latest Brexit related update is that yesterday evening Parliament voted in a new amendment specifying that the government has 3-days to report back to the commons with its ‘plan B’ in the event that May loses next week.

Economic data is taking a back seat at the moment owing to the importance of UK politics at the moment, but it’s worth being aware that on Friday there will be UK GDP figures released at 9.30am with growth of 0.1% expected. I would expect to see a drop in the Pounds value if this figure disappointing especially if the figure shows a negative figure.

If you wish to be updated and to plan around what could be a busy week for the GBP/AUD pair, do feel free to register your interest with us.

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 debate to influence GBPAUD exchange rates

Today debating begins in the House of Commons and I expect this will be the key driver for GBPAUD exchange rates for the remainder of the week. Most media outlets are suggesting that Theresa May has failed to gain further concessions from the EU, therefore the next 3 days could be tricky for the Prime Minister and consequently the pound could suffer.

Going into next week, Conservative MPs are going to have to ask themselves whether voting in favor of Theresa May’s ‘good deal’ is better than voting against her and consequently entering a complete unknown. It’s likely if MPs vote against her, the Prime Minister will take the trip back to Brussels to try to renegotiate. However the problem I have with that is she has lost all of her bargaining chips now that MPs are pushing her to confirm that a no deal Brexit is completely off the table. If the UK are not prepared to leave the EU with a no deal Brexit why are the Europeans going to give further concessions?

Other alternatives would be for Labour to file a motion of confidence against the government which could force a general election, Theresa May to resign, a peoples vote or a no deal Brexit. Most of the alternatives I expect will cause more pain for clients that are buying Australian dollars.

Prime Ministers questions start at midday and the debate will follow. To be kept up to to date as developments unfold feel free to outline your requirements.

If you are buying or selling Australian dollars in the future, I would strongly recommend getting in contact to discuss your requirements. The company I work offers a proactive service to offering economic information whilst having the ability to offer award winning exchange rates. Feel free to email me with your requirements along with the timescales you are working to and I will respond with my forecast and the process of using our company drl@currencies.co.uk.

GBP/AUD continues to trade towards the lower end of its recent ranges, where to next for the pair and what’s influencing it?

The Pound to Australian Dollar rate continues to trade in the mid 1.70’s just over 1.75, which is around the bottom of its current trend when you look at both a 3-month and a 6-month chart. There has been a steep decline in the Pound’s value from around the middle of October and much of this market movement can be attributed to Sterling weakness as the Brexit uncertainties ramp up with the Brexit date just around the corner now.

Yesterday it was announced that the ‘meaningful’ vote on UK Prime Minister Theresa May’s Brexit deal will take place. It has previously been outlined for last Tuesday but she postponed it the day before owing to fears that she would receive very little support for it. May has since won a vote of no-confidence although there were around of a 3rd of her Conservative Party MP’s that voted against her leadership which shows the discontent with her deal.

The Pound has also lost value against most other major currency pairs recently as time to agree on a deal is running out. There appears to be little scope for amendments to the deal which may be the Prime Ministers downfall as the Northern Irish backstop arrangement is the main sticking point for the deal and the reason for the DUP Party not supporting the deal which has added pressure to May and also the Pound’s value.

Although economic data is not the main driver of GBP’s value at the moment, it’s worth being aware that this Thursday there will be a Bank of England Interest Rate decision and although no changes are expected, any comments to future monetary policy plans could influence the Pound’s value.

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 chaos continues as Conservative MP’s trigger a vote of no confidence in PM May, will this put pressure on GBP/AUD?

This morning it’s been announced that a vote of no-confidence has been triggered by the Conservative Party after Sir Graham Brady, the Chairman of the 1922 Committee confirmed that he has received at least 48 letters of no-confidence from Conservative MP’s.

The Chairman of the 1922 Committee isn’t required to announce how many letters he’s received but we do know that it’s at least 48 as this number constitutes 15% of the Tory members. Since the news broke the Pound has actually remained unchanged and this is probably because the vote will take place this evening between 6.00 pm and 8.00 pm so until shortly afterwards we won’t know the outcome and therefore, the next steps for Brexit.

Since the announcement which was around 7.45 am this morning, there have been a number of Conservative MP’s that have outlined their plans to support May, with the general consensus that a change in leadership this far into the Brexit process would be chaotic. If there are a number of votes against against her though, there is a chance she may resign even if she’s not obliged to owing to the lack of support from her own political party.

May has already given a speech outside Downing Street this morning whereby she’s highlighted that if she’s replaced a new leader would have to delay Brexit, as they wouldn’t have enough time to renegotiate the withdrawal agreement.

With regards to the Pound to Aussie Dollar exchange rate I would expect to see the next potential market movement to come after the vote this evening, with the result expected to be released shortly after the vote.

AUD exchange rates have been influenced over the past week and a half by the concerns that the US-China trade war tensions could resurface, as China is Australia’s main trading partner. Those of our readers planning a GBP/AUD trade should follow this matter as it’s the main driver of AUD value at the moment.

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 Australian Dollar Forecast: Brexit vote to impact GBPAUD exchange rates

The Pound has had a very good week against the Australian Dollar but has started to struggle towards the end of the week in anticipation of next week’s Brexit vote in parliament.

MPs have been debating for the last few days over the current deal and at the moment it appears highly unlikely that this deal will get approved when the vote takes place on 11th December.

Earlier this week the government were found in contempt and then were forced to release the legal documents advising on Brexit.

Theresa May has been busily campaigning in favour of trying to convince MPs to vote through this current deal but according to a number of different media reports this is highly unlikely to get the votes needed to approve the deal on offer.

If Theresa May does not get the votes needed there are a number of different alternatives as to what may happen next week. Some have suggested that she may even stand down but owing to her bullish personality I think that she will stay as long as she can.

The next option available to Theresa May is to go back to Brussels on 13th December to try and see if she can renegotiate alternative terms to that on offer but this will be very difficult as the UK and European Union have already agreed this current deal in principle so they may not wish to budge at this late stage.

Over this weekend Downing Street has denied claims that Theresa May could even delay the vote in an attempt to avoid losing. Rumours are circulating that the Prime Minister is planning to go back to the European Union to try and get a better deal before the vote is held.

At the moment the current deal on offer is struggling to get the support it needs to be approved by MPs so if May manages to change some of the terms this could help to provide support to the Pound vs the Australian Dollar.

If you would like a free quote when buying or selling Australian Dollars then contact me directly and I look forward to hearing from you. I have worked for one of the UK’s leading currency brokers since 2003 and I’m confident that I can offer you a bank beating exchange rate as well as helping you with the timing. 

Tom Holian teh@currencies.co.uk

 

Brexit Impact papers push Sterling lower against the Australian Dollar

After a strong start to the trading session yesterday, Sterling exchange rates have seen their fortunes reverse since yesterday afternoon when Brexit Impact papers were released by both the Government as well as the Bank of England.

Both releases suggested that the UK will be worse off by carrying out the Brexit with the BoE outlining a number of worse case scenarios for the UK economy in the case of a no-deal Brexit. Their report outlined the potential for the Pound to lose 25% of its value against both the Euro and the US Dollar which would put Sterling below parity vs both of these key currencies. Property market falls of 30% were also contained within this worst case scenario Brexit report as well as unemployment potentially rising to 7.5% and since this report we’ve seen a sell-off of the Pound’s value which has accelerated this morning.

After almost reaching 1.77 yesterday we’ve seen the pair drop below 1.75 this morning which goes to show how much the currency has been impacted by these reports. It’s also worth noting that the Australian Dollar has lost value recently owing to the sharp drop in the value of iron ore which is a key export of the Australia’s. Iron ore prices have dropped by 9% this week which represents the largest drop in over a year. The rhetoric between US President Donald Trump and Chinese leaders has also ramped up with concerns of a global slowdown owing to the trade war once again impacting currencies such as AUD’s.

Economic data releases are light for the remainder of the week between the UK and Australia so it’s likely that Brexit talks will remain the main driver of currency fluctuations.

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.

Aussie Dollar comes under pressure as US-China tensions resurface, and fears of a global slowdown take hold

The Australian Dollar has come under pressure in early trading today, although the fall has a lot further to go to wipe out the gains made by AUD over the past month and a half. Against the US Dollar the currency has lost over 1% over the past 24-hours as investors have piled into safe haven currencies and taken funds out of riskier currencies such as the Aussie.

Over in the US the Federal Reserve Bank has indicated plans for a less aggressive monetary policy next year than the markets had previously anticipated, and signs of a global slowdown with stock markets still selling off is concerning financial markets hence the sell-off.

AUD exchange rates haven’t been helped by comments out of the White House yesterday either. In the lead up to the G20 meeting next week there have been hopes of a truce between US President Donald Trump, and Chinese President Xi Jinping, but yesterday as the White House said Beijing has failed to alter its ‘unfair’ practices. As China is such a key trading partner of Australia’s this is negative news for AUD which perhaps explains yesterday’s sell-off of the Aussie Dollar.

There are no economic data releases out of Australia this week, so I expect the GBP/AUD rate to continue to be driven by Brexit related updates which are coming through thick and fast at the moment. UK PM, Theresa May will be in Brussels today to discuss the Brexit agreement text with EU leaders for the first time since the text was announced last week.

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.

 

GBP/AUD drops after May’s Brexit deal looks unlikely to get the support she needs

The Pound is down across the board of major currency pairs today, in most cases by over 1% at least with the GBP/AUD rate down by over 1.6% at the time of writing. Yesterday the Pound was increasing in value on hopes of May’s cabinet supporting her deal, but this morning the situation is very different with Sterling under increasing pressure.

This morning its emerged that Dominic Raab, the Brexit secretary that took over from David Davis after he resigned, has this morning resigned himself stating that he ‘cannot in good conscience support the terms proposed for our deal with the EU’. This has put further pressure on Sterling with money markets now suggesting the chances of another interest rate hike from the Bank of England has now lowered.

Whether the Aussie Dollar will continue to climb against the Pound this morning will depend on whether there are further resignations from her cabinet, and also whether May can pass her Brexit deal through Parliament. The rumour mill suggests she will need to gain the support of of more than 50 hardcore Tory Brexiteers and Labour rebels. Donald Tusk has also hinted at concerns May could lose her position which would scupper the plans agreed over the past week.

Some key figures from within the hardcore Brexit movement have already announced their disapproval, and I think there could be further resignations based of the knee jerk reaction to her proposals.

Economic data is likely to take a back seat regarding GBP exchange rates at the moment, with Brexit remaining the main driver of currency value. 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.