Tag Archives: gbpaud exchange rates

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

 

 

Will GBPAUD rates remain above 1.80?

The pound to Australian dollar exchange rate has been above 1.80 comfortably now for a period and the outlook is now much more positive for the future. The Australian dollar has been losing its shine as investors look for more profitable avenues overseas which include the US dollar. A key driver of late on GBPAUD has been the interest rate changes in the US and the UK, with them hiking, as in the US, or on the way to hiking – the UK.

This difference in outlook compared to the RBA (Reserve Bank of Australia) who are currently refraining from hiking has allowed big movements on the pound and US dollar against the Aussie. The RBA has been monitored very closely over its performance and attitudes to raising interest rates and this will likely continue to be a feature in the coming months.

Generally speaking, I would imagine the RBA will continue to be soft in its assessments moving forwards and this will keep the Australian dollar on the weaker side. Despite this, the Aussie may well find some favour if there are any unexpected twists and turns or bumps in the road on the US and UK path to raising interest rates.

Another factor which will likely weigh on the GBPAUD rate will be the progress on Brexit which could see the pound to Australian dollar rate fall below 1.80 if there are further troubles over the Irish border or concerns over what type of trade deal the UK will get. Any surprisingly strong data from down under might see the Australian dollar fight back against sterling too.

In April I expect a range between 1.78-1.85 as the conditions that have seen us hit the current rates of exchange continue to act as a driver on the pair. Thank you for reading and if you have any upcoming transactions and wish for some insight and information on achieving the best rates of exchange, please do get in touch with me Jonathan Watson by emailing jmw@currencies.co.uk directly.

Aussie Dollar boosted after positive Retail Sales data, where to next for AUD exchange rates? (Joseph Wright)

The Aussie Dollar has received a boost overnight after some positive economic data.

After disappointing in recent months Australian Retail Sales down under have rebounded and impressed during February. Retail Sales rose by 0.6% during the month after slumping in January and December.

Improving sales along with inflation are increasing the chances of a rate hike from the RBA, up from its record lows which is where interest rates currently sit.

The Pound has reached new annual highs against the Aussie Dollar in recent weeks after the Brexit transitional agreement has been arranged between the UK-EU negotiators. This positive news for the UK benefited the Pound along with increasing likelihood of a rate hike in May.

Now that the US Dollar offers a higher return than the Aussie Dollar, it’s not surprising to see the Aussie Dollar lose value as investors move deposits from AUD into the USD. Before the recent rate hikes from the FED Reserve bank in the US AUD had offered one of the highest returns in the developed world, but now that AUD is losing this competitive edge we’re seeing the currency lose value.

Early tomorrow morning there will be the release of Australian Import and Export data along with Trade Balance figures. If you’re planning a currency transfer involving AUD it can be worth setting up target rates in case the best trade levels are available in the early hours when we’re not in the office.

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 on the ropes vs the Pound during March. – is there further weakness ahead in April? (Tom Holian)

The Pound has had one of its best months in recent times against the Australian Dollar hitting the best rate to buy Australian Dollars with Pounds since June 2016 when the EU referendum was announced.

The Australian Dollar has been struggling with an imbalance between the western part of the country where the mining industry appears to be slowing down whilst the east coast cities seem to be performing better.

The issue for the Reserve Bank of Australia is how they will be able to manage monetary policy going forward. The RBA is due to meet next Tuesday and I think the tone will be very dovish and any talk of a rate hike will be a long time coming.

Inflation has been struggling and the economy is showing signs of a slowdown in Australia and this is another reason for the weakness of the Australian Dollar with GBPAUD rates hitting 1.85 earlier on this week.

America now has a higher interest rate than Australia and this has meant global investors has begun to bypass the previously attractive yield available down under in favour of placing money in the US.

The trade wars between the US and China have caused big problems for the Aussie Dollar and I think there could be worse to come with this particular topic as Trump has already been rather vocal about putting America first.

Meanwhile the economic data from the UK has been improving and only recently the Bank of England announced a 7-2 vote in favour of keeping interest rates on hold which suggests a rate hike may be coming fairly soon with odds relatively high of a rate hike coming in May.

On Wednesday Australia announces the latest Retail Sales data and I think this could come out lower than expected putting further pressure on the Australian Dollar vs the Pound.

Therefore, if you’re in the process of buying Australian Dollars it may be worth holding on until later on next week.

However, if you’re selling Australian Dollars it may be worth organising this very soon.

If you would like further information about how to save money on exchange rates or you would like a free quote then email me directly with your requirements and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Pound continues to make gains vs the Australian Dollar (Tom Holian)

I have been predicting in my last few articles that the Pound would break through 1.80 during the course of this month and continue to rise against the Australian Dollar which has shown signs of a real struggle during March.

We are now at the highest level to buy Australian Dollars with Pounds since the the referendum during June 2016 which saw the Pound collapse against the Australian Dollar after the British public voted to leave the European Union.

Although the Pound has been supported by better news on the Brexit front including an agreement on the transitional deal it appears to me is that it is more likely to be overall weakness for the Australian Dollar which has seen GBPAUD exchange rates move to these recent highs creating some excellent opportunities to buy Australian Dollars with Pounds.

There are a number of reasons why the AUD has weakened but mainly due to what is happening in the US during the course of this month. At the moment the Trump administration has put in place a number of different tariffs on Chinese goods coming into the US and as China is Australia’s largest trading partner any problems will often result in Australian Dollar weakness. If the trade wars ramp up this could cause further problems for the Australian Dollar so if your’e considering buying Pounds it may be worth organising this in the near future.

The stock market down under has also fallen since the start of the week as the US is also proposing a crackdown in Chinese investment in tech firms in the US.

With the Reserve Bank of Australia due to meet early next week I think the tone will suggest that any interest rate hikes may be a long time coming so this could provide a further boost for GBPAUD exchange rates.

Having worked in the foreign exchange industry since 2003 with my experience I am confident of being able to offer you both bank beating exchange rates and also help you with the timing of your transfer of currency.

If you 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

 

Could we see further increases in the value of the Pound vs the Australian Dollar? (Tom Holian)

The Pound has maintained its positive run recently against the Australian Dollar hitting levels of 1.83 on the mid-market creating the best rate to buy Australian Dollars with Pounds since the EU referendum back in June 2016.

The US have again raised interest rates are now they have surpassed the rate in Australia which has caused global investors to sell the Australian Dollar and move funds into the US.

The American economy has been going from strength to strength recently and with the Federal Reserve likely to continue on their path of raising interest rates this year I think we could see further weakening of the Australian Dollar.

The Reserve Bank of Australia are unlikely to be raising interest rates in the near future as the Australian economy is showing signs of a slowdown and with the trade wars between the US and China this could cause further problems for the Aussie Dollar.

The reasoning is that as China is such a major trading partner with Australia any problems with the economy in China can often have a negative effect on the value of the Australian Dollar.

The ongoing trade wars between the US and China have also destabilised the currency markets and this has again caused global investors to move money away from riskier commodity based currencies such as the Australian Dollar.

I think we could see further weakness ahead for the Australian Dollar. We have already seen the Pound remain above 1.80 for a sustained period of time and if the tone of Brexit remains positive I think we could see a strong end to this month for the Pound vs the Australian Dollar.

Having worked for one of the UK’s longest established currency brokers since 2003 I am confident of being able to offer you bank beating exchange rates as well as helping you with the timing of your currency transfer when exchanging Australian Dollars

For a free quote please send me an email directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Best rate to buy Australian Dollars since June 2016 (Tom Holian)

The Pound has risen close to EU referendum highs this week against the Australian Dollar after news that a transitional deal has been confirmed.

This has given Sterling a boost against a number of major currencies and with the EU summit due to take place if the talks go well this could see GBPAUD exchange rates continue to rise.

The Australian Dollar has also struggled in recent weeks as the chances are that we will see a number of interest rate hikes in the US during the course of this year and tonight the US Federal Reserve are due to increase interest rates, which will take them higher that in Australia.

In recent years global investors have moved money into Australia owing to the higher yield but as the US economy is improving and a series of rate hike plans are planned this has caused the Australian Dollar to weaken.

In a number of my previous articles I wrote that I thought we would see Sterling break past 1.80 during the course of this month and this has all been proved right.

The minutes from the recent Reserve Bank of Australia meeting suggested that the chances of an interest rate hike down under are very low and this in my mind has caused investors to sell the Australian Dollar in favour of the US Dollar, which has pushed GBPAUD rates in an upwards direction.

Australian unemployment figures are due overnight as well as Australian employment change data and this could cause a lot of movement overnight so make sure you keep a close eye out on what happens with this data release.

Arguably the most important event for GBPAUD rates will be the EU summit which starts tomorrow so expect a lot of volatility in the days ahead.

If you would like further information about what is happening with the Australian Dollar as well as a free quote then contact me directly and I look forward to hearing from you. The more information you provide me about your particular transfer means I can provide you with a more detailed answer.

To Holian teh@currencies.co.uk

Pound hits referendum high to buy Australian Dollars (Tom Holian)

As predicted in a number of my previous articles covering the Pound vs the Australian Dollar I did say that I thought we could see GBPAUD rates break through 1.80 this month.

During Friday’s trading session my prediction came true after the one of the RBA members Debelle suggested that Australian interest rates are likely to be kept on hold for quite some time to come.

This saw GBPAUD rates move past 1.80 creating some excellent opportunities to buy Australian Dollars with Sterling.

Indeed, the Pound had a good week against most of its counterparts in anticipation of a lot of movement during the course of next week.

On Tuesday the UK releases its latest inflation figures for year on year with the latest Consumer Price Index for February.

Inflation is currently at 2.9% which is a long way above the target of 2% so another high reading could provide support for another interest rate hike in the UK.

Indeed, interest rates were raised towards the end of 2017 following a long run of high inflation so on Tuesday this could provide further justification of another rate hike currently 75% priced in for May.

On Wednesday UK unemployment figures are due to be published which are close to the lowest since records began over 40 years ago. However, one issue is that of Average Earnings which will be announced at the same time as the jobs data. Wages are struggling to keep up with inflation so this could see a potential banana skin for the Pound.

On Thursday the Bank of England will announce their latest monetary policy and although there is almost no chance of a rate hike if there are any suggestions of this coming in the near future I expect Sterling to rise in the value against the Australian Dollar.

However, arguably the biggest impact for anyone with an Australian Dollar requirement will come on Thursday when the EU Summit takes place. At the moment the future of the UK’s relationship with the European Union is very uncertain and uncertainty often results in heightened volatility.

Therefore, if you’re concerned about what may happen it may be worth getting things organised prior to Thursday.

If you would like further information about how to save money when buying or selling Australian Dollars and would like a free quote then contact me directly and I look forward to hearing from you.

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

 

Predictions of a higher GBP/AUD rate mount as Brexit transitional deal hopes grow (Joseph Wright)

The Pound to Australian Dollar exchange rate climbed during today’s trading session, with the pair now trading almost at the very top of the current trend.

The mid-market level for the pair hasn’t breached 1.80 in some time but the pair are currently trading in the 1.78’s, meaning that for those planning on making a GBP to AUD transfer are looking at attractive levels considering recent trading levels. I would add that the lower end of the trend is 1.60 so hopefully you can see my reasoning as to why the current levels are around the top of the market.

There are hopes that the Pound will climb further, and this week the Brexit Secretary, David Davis said that the UK ‘can live with’ a shorter transitional period which has boosted the Pound’s value along with the likelihood of UK interest rates climbing sooner than many had expected.

Analysts at Lloyd’s Bank have recently upgraded their forecasts for the Pound to Aussie Dollar rate this year. They had previously expected to see the pair trade at 1.72 at the inter-bank level although the changing tones from the Bank of England and the Reserve Bank of Australia has changed their minds, with them upgrading their views on the Pound’s potential.

There isn’t any major economic data coming out of the UK or Australia this week, so I expect the pair to be driven by politics for the remainder of the 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.

Pound Australian Dollar Rates and could we see 1.80? (Tom Holian)

As predicted in my recent article over the weekend I think we could see GBPAUD exchange rates challenge 1.80 during the course of this month as Sterling has made some steady gains vs the Australian Dollar in recent weeks.

In the Spring Statement delivered by Chancellor Philip Hammond he was relativity positive about the the British economy and has predicted falling inflation, less borrowing and has also upgraded projections for UK growth.

This has been taken by the market very well and this has seen Sterling increase vs the Australian Dollar during this afternoon hitting 1.7750 at the time of writing.

Good news if you’re considering buying Australian Dollars with Sterling at the moment.

The Chancellor has forecast that growth this year would hit 1.5% which is just above the target set by the Office for Budget Responsibility back in November.

Turning the focus back towards what is happening with the Australian economy at the moment tonight we see the latest release for the Westpac Consumer Confidence survey.

This has been falling recently so another pessimistic release could pile further pressure on the Australian Dollar.

Combine this with tonight’s Chinese Retail Sales data as well as Chinese Industrial Production data this could cause a lot of movement for GBPAUD exchange rates so make sure you’re prepared for a lot of movement early tomorrow morning.

Things seem to be slowly improving for the British economy and today’s Spring Statement has also supported this view which is why I think we could see the Pound hit 1.80 vs the Australian Dollar before the end of this month.

If you are in the process of either buying or selling Australian Dollar at the moment and would like further information or a free quote then contact e 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 better exchange rates as well as helping you with the timing of your transfer.

Email me directly with a brief explanation of your requirement and I look forward to hearing from you

Tom Holian teh@currencies.co.uk