Tag Archives: GBP/AUD forecast

Pound to Australian Dollar rates dip heading into the first weekend of campaigning (Joshua Privett)

Politics is still the name of the game in governing Pound to Australian Dollar exchange rates, with the first weekend of campaigning in the UK General Election making a few investers nervous as we enter into the weekend.

So why the dip?

This is the first weekend of heavy campaigning following the announcement last Tuesday from Theresa May, calling for a snap-election in the UK, which saw Pound to Australian Dollar exchange rates rise to multi-month highs over the course of 36 hours of trading.

However, this weekend’s campagining has made a few investors nervous, which is why Sterling fell away slightly from the recent highs very late on Friday afternoon.

This is the first weekend where each major party will be alluding to what will be key features released in their manifestos, so there is a strong potential for a shift in the polls. Labour have already come out swinging with Jeremy Corbyn stating that Labour will add 4 more bank holidays per year to the calendar if elected.

With so much unknown the Pound weakened, however, should the polls show few surprises on Monday, Australian Dollar buyers can be fairly confident of a recovery as we progress further into the week.

With no news coming out to affect the Australian Dollar until Wednesday with a measure of Australia’s inflation to be released, this will likely be the governing narrative until then.

In such a politically fluid landscape, a premium is put on being a well-informed purchaser, and being able to move quickly to avoid being ‘last to the party’ should any opportunities emerge, or to avoid being ‘caught out’ should rates deteriorate whilst you are busy at work during the day.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on  jjp@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.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

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.

GBPAUD hits 1.70! What next?

The pound to Australian rate has hit the 1.70 mark as investors embrace Theresa May’s plans to call a snap General election. Expectations for the pound are now very much positive as investors find answers to some of the questions of uncertainty which have been plaguing the pound in the last few weeks and months. This is not just a story about the pound, of course, the Australian dollar has fallen back as the RBA indicate what many of us suspected some time ago, further interest rate cuts down the line are a real possibility.

GBPAUD could now move much higher as some of the previous reasons to hold on to Australian dollars evaporate. Expectations for the Australian dollar to move higher have been largely hampered in recent weeks as a mixed bag of economic data and a stronger pound makes life difficult for Australian dollar sellers. If you have Australian dollars to sell and are hoping for big improvements you might need to remind yourself of just how much the market has improved for you since the Referendum! With over 40 cents between the high and the low Australian dollar sellers are now at some of the best rates they have had since 2013!

GBPAUD could now well rise further, particularly since the likelihood is Theresa May will win the election with a very large majority. The overall expectation for the rates is that we could now easily test 1.80 in the next 4 weeks. If you have a transfer buying Australian dollars then making some plans in advance is vital to the understanding of where rates might head.

We could now be about to break into some very much fresh ranges and any clients with an expectation to buy or sell the Australian dollar should be doing what they can to plan in advance for future volatility. If you have a transfer to make and wish to get an overview of the market and receive some updates and news on what might be happening please feel free to get in touch directly with me Jonathan by emailing jmw@currencies.co.uk.

Pound to Australian Dollar exchange rates poised for further gains (Joshua Privett)

Pound to Australian Dollar rates are sitting more comfortably in the mid 1.60’s now after repeatedly being close to knocking on the door below 1.60.

The key turnaround point has been in the global appetite to risk recently. Escalating tensions between the US and North Korea and the US and the Syrian conflict is not only driving up the price of gold. Currency markets also reflect the landscape.

Riskier currencies – those not in as high a circulation, and tied to more volatile markets such as commodities – tend to get hit heaviest in these situations.

Last week some strong Australian employment data (a bit of an understatement, they added 9 times as many jobs to the economy than expected) reversed this trend somewhat, but the Pound is already beginning to regain some of its lost ground.

With the North Koreans attempting another nuclear test over the weekend, these heightened tensions are not going away. However some Chinese data coming out over the next few days should continue to highlight some of the positive features of Australia’s trading relationship with China, and therefore bolster the AUD in the short-term.

As such Australian Dollar sellers should see the beginning of next week as an opportunity. Waiting is, at this point, a judgement that the heightened tensions surrounding Syria and North Korea will be resolved shortly.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on  jjp@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.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

Will the Australian dollar lose value? (Dayle Littlejohn)

Throughout Friday mornings trading session the missile attacks on Syria, sent a worrying message throughout the currency markets and the Australian dollar (a commodity currency) devalued. In times of uncertainty its a common trend for commodity currencies to devalue as they are seen as a risk. A strategy for speculative currency traders is to sell off their positions and purchase ‘safe haven’ currencies such as the US dollar or Swiss Franc. Looking ahead if further unexpected attacks take place in the upcoming weeks I expect the Australian dollar to continue to lose value.

Interest rate cuts on the horizon?

As our regular readers are aware Australia heavily relies on China and Paul Dales Chief Australian and New Zealand economist for Capital economics expects the RBA will make cuts to interest rates before they are hiked as forecasters are predicting a slowdown in China int the near future. This does not surprise me as it appears the monetary policy program has eased which is now not having a positive impact and China’s debt now exceeds 250% of GDP.

Time to sell Australian dollars and buy sterling?

If you are emigrating to the UK from Australia or purchase goods and services from the UK, I believe now is the time to make the purchase. UK Prime Minister Theresa May has brought certainty to the pound by triggering Article 50 and a slow down is on the horizon for China.  Unless Brexit negotiations break down at the first hurdle, present exchange rates could be the best we are going to see for some time.

For readers that are converting Australian dollars into sterling for the first time, if the UK public had not voted out of the EU, exchange rates could have still been close to 2 to 1, which means you would receive 35 cents less. To put this into monetary terms on a 400,000 Australian dollar transfer you would have received over £40,000 less.

Are you needing to buy or sell Australian Dollars in the upcoming weeks, months or years? If you are I can help you save money…

The currency company I work for has won numerous awards for exchange rates therefore it enables me to trade Australian dollars at rates better than other brokerages and high street banks. I would recommend sending an email with a brief description of your requirements and your timescales (this is very important, the length of time you have will change your options) and I will email you with my strategy and the process of using our company drl@currencies.co.uk.

Will the Pound to Australian Dollar rate rise now that Brexit is underway? (Joseph Wright)

With Brexit underway and the UK having up until the 29th of March 2019 to arrange trade agreements, the pressure on the Pound appears to have eased.

The Pound to Australian Dollar rate hit its highest level on Tuesday afternoon which was just below 1.65, and I think if the Pound manages to break above this level and consolidate above 1.65 we could see the GBP/AUD climb back up to the 1.70 level.

While the political uncertainty surrounding the UK has previously weighed on Sterling’s value as is often the case in these times, the invoking of Article 50 has given the Pound a boost against most major currency pairs. Couple this with the limited demand for AUD as the US has recently hiked interest rates and plans to a number of times this year, I’m expecting to see the Pound climb over the medium to long term versus the Aussie Dollar unless trade negotiations hit a standstill.

Later this morning there will be an important economic news release in the form of Services PMI. This offers us an insight into market sentiment within the services sector which is a key driver for the UK economy. Expect any deviations from the expected figure of 53.5 to create movement between GBP exchange rates and feel free to get in touch if you wish to plan around this or any other key data releases.

There are tools available to our clients to help them trade at higher levels than currently available, such as Limit Orders. If you’re planning a currency exchange between the Pound and the Aussie Dollar its worth getting in touch to discuss these types of options as well as our commercial level exchange rates as we may be able to save you a considerable amount of money, especially when compared with the typical bank.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, 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.

GBP/AUD remains range-bound as the Brexit process begins, where to next for GBP/AUD? (Joseph Wright)

Despite this week being historic for the UK the Pound has remained relatively flat vs the Australian Dollar throughout the week, and at the time of writing the currency has moved less than 1% against the Aussie since the week’s beginning.

I’m of the opinion that the Brexit has been priced into the Pounds value, and I’m not expecting to see another major sell-off in the pound. I made this prediction prior to the UK’s triggering of Article 50 and I think moving forward the only factor that could cause another historic drop like the one we saw last June would be if it becomes public that trade negotiations are going terribly for the UK during this key 2-year period.

Later this morning there will be GDP figures released for the UK, with expectations of 2% annually and 0.7% on a quarterly basis. I think that economic data out of the UK is likely to be watched closely by financial markets due to the UK’s ongoing plans to leave the EU. If you would like to be kept updated regarding key data releases and sharp price movements between the Pound and the Aussie Dollar do feel free to register your details with me and I’ll be happy to keep you updated.

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.

GBP/AUD gains in the lead up to Brexit’s official start, where to next for GBP/AUD? (Joseph Wright)

Investor fears surrounding the UK economy appear to have waned over the past week or so, as the Pound has once again gained across the board of major currency pairs during today’s trading session.

Those converting Aussie Dollars into Pounds are seeing the exchange rates offered weaken on almost a daily basis at the moment. At the beginning of last week the mid-market rate sat at 0.6250 whereas it’s currently trading at 0.6066, losing almost 2 cents in a short period of time.

Personally, I’m not expecting to see the Pound sold off heavily once the UK makes its intentions to leave the EU official. The Brexit is now arguably priced into the Pound’s value and I think the reason GBP/AUD has risen quite substantially is due to both the certainty the deadline date of the 29th of March has given the markets, as well as the likelihood of future interest rate  changes from both the Bank of England and Reserve Bank of Australia.

The rise in US interest rates has also limited demand for the Aussie Dollar as investors switch funds from the high yielding Aussie Dollar and into the safe haven currency of the US Dollar.

The BoE’s next interest rate change is looking like it will be a rise to counter rising inflation, so moving forward I’m expecting to see the GBP/AUD rate test 1.70 as opposed to 1.60. I think the potential downside for Sterling’s value could come from a breakdown in trade negotiations as the Brexit begins so those hoping the Pound climbs further from here should close attention to this topic.

If you are planning to make a currency exchange involving the Pound and the Aussie Dollar, 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.

Pound to Australian Dollar exchange rates and Article 50 (Joshua Privett)

Pound to Australian Dollar exchange rates are going to be governed by the activity of trillions being traded on the currency markets on Wednesday as the day we have been waiting for since last June, Article 50’s triggering, has finally arrived.

Speculators at high street institutions are the actors holding capital large enough that each trade causes buying and selling Australian Dollar rates of exchange to shift. The potential volatility involved in this event is a fantastic opportunity in their world for exaggerated profits. Each will be second guessing the other in buying a selling activity, with millions to be made and lost every few seconds. 

Since this activity is difficult to second guess, the dilemma for Wednesday, not just for buying Australian Dollar rates but a host of currencies connected to Sterling, is becoming a bit more understandable.

Frankly, a significant degree of this volatility depends on the language which Theresa May utilises when addressing Parliament at midday, following the letter she would have sent to the European Council that morning. May’s choice of words even since January has been heavily Pound positive and sometimes alarmingly Pound negative. Australian Dollar buyers and sellers alike should be viewing Wednesday with some degree of risk.

As such, anyone with a Pound to Australian Dollar requirement and who are not willing to gamble on the result on Wednesday may be wise to consider their options ahead of Article 50’s enactment. Even if your requirement to buy or sell Australian Dollars is later on this year, you can pre-book your currency at today’s rates, guaranteeing that rate moving forward rather than relying on an unpredictable market to do the work for you.

Using personal contact with myself to monitor rates of exchange in the run up to Wednesday in order to make an informed decision on your transfer is recommended. As reading this website’s morning and evening posts is not sufficient to keep up to date in an market which changes by the second, particularly around an event such as this.

If you are planning to make a currency exchange involving the Pound and the Australian Dollar, it’s well worth your time getting in contact with me on  jjp@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.

I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.