Tag Archives: pound
Best rates for buying the Aussie Dollar as they keep interest rates on hold. Weakening of the Aussie Dollar could just well continue. (Ben Amrany)
The Reserve Bank of Australia held their base rate of interest at 2.5% last night but stated they were still concerned about the strength of the Aussie Dollar. This is the fourth month in a row that interest rates have been left unchanged and they stated that growth has been below trend and medium-term inflation was on target, while the Australian dollar was still ‘uncomfortably high’.
With regard to foreign exchange markets, Stevens continued to show concern over the Aussie dollar’s strength.
“The Australian dollar, while below its level earlier in the year, is still uncomfortably high. A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy,” Stevens repeated.
For those of you selling the AUD to buy the pound, Euro and US Dollar this is a warning that although the Aussie Dollar has significantly weakened and there may be further declines around the corner next year. The Tones of the RBA have continued to state they want a weaker currency so those of you holding off to see the currency strengthen to levels of just a few months ago may be left extremely disappointed.
I feel it is unlikely you will see the rates move significantly in your favour and if you do need to sell the Aussie Dollar over the coming months you may be better off trading now on a forward contract to minimise your risk to the markets.
All you can do is make an educated guess as to where you feel the market will go by looking at all the information available. By next year the rate may just be 10% worse than where we are currently at.
If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at firstname.lastname@example.org
GBP/AUD through 1.81 following poor GDP figures from Australia, will this trend continue? (Mike Vaughan)
Sterling pushed through the 1.81 barrier this morning, bringing GBP/AUD to its highest levels since February 2010 – but will this trend continue? Overnight Australian GDP data was released showing a disappointing result of 0.6% down from the expected 0.6%. This has brought the shift in Sterling to just shy of 8% against the Aussie since the end of October – a pretty good return in anyones eyes. For me there is a chance that this run will continue, but I would also urge AUD buyers to consider these gains and view the opportunities currently available.
Looking at the data for the rest of the week watch out for employment figures from the US at 12:15 today and the important non-farm payroll figures at 13:30 on Friday. Any improvement and I would expect further losses for the AUD as this shifts the likelihood of the FED tapering QE a little bit closer, a situation that is likely to bad news for AUD exchange rates. Also watch out for the Bank of England interest rate decision tomorrow at 12.00, expect to see no change which shouldn’t affect rates significantly but still one to keep an eye on.
As with making any financial decision it is always best to get as much information about the product and the service on offer. As a specialist execution only currency broker we pride ourselves on our
efficient, client friendly service and most importantly our price. When using a broker rates can be significantly better than high street banks and other financial institutions. To find out more about the service please contact 01494 787478 or email me with a brief overview of your particular requirement and I will happily provide further insight into current market conditions and the contract that may work best for you. Email Mike on email@example.com
The Australian Dollar has had the worst month in a few months against the Pound and has hit the lowest level against Sterling for the whole of 2013. Investors are nervous about what is happening down under as the RBA has made comments that monetary intervention including artificially weakening the currency in order to make exports more competitive.
As China’s growth starts to slow this means less resources are in demand and the economy in Australia feels the effects. As China is Australia’s largest trading partner any negativity could have a serious impact on Australian Dollar exchange rates. RBA Governor Glenn Stevens has mentioned the possibility of intervening last week which has weighed on the strength of the Aussie Dollar.
During the credit crunch era of 2007 and 2008 the RBA has admitted that they intervened in the foreign exchange market so the precedent has already been set from before. The previous movement was an attempt to stabilise the disorder that was taking place at the time. During 2008 the Aussie Dollar lost as much as 40% against the US Dollar.
I’m not claiming that we’ll see such a movement but there is room for a quick changing in the exchange rates if the RBA does attempt to influence things so if you’re concerned about making a currency transfer to buy or sell Australian Dollars then get in touch for a free quote Tom Holian firstname.lastname@example.org
The Australian Dollar has lost ground against most major currencies in trading today following comments from the Governor of the RBA (Reserve Bank of Australia) mentioning that he would be keeping an open mind on intervention to weaken the Australian Dollar in the near future.
This confirms the constant opinion that the RBA feel that a strong Australian Dollar is damaging the Australian economy and that there is certainly further scope for another interest rate cut in Australia in the near future.
An interest rate cut is generally seen as negative for the currency concerned and a hike in rates positive so a cut in rates again may further weaken the Australian Dollar and even the pure speculation of this and other possible measures coming into play may weaken the Australian Dollar further against the Pound and could push Sterling – Australian Dollar rates closer to 1.80 in the lead up to Christmas.
Of course anything can happen as we all know though so if you do have a pending currency transfer to carry out and you want to get the very best rate of exchange for it along with having a proactive, knowledgeable and vigilant currency broker on your side then please do feel free to contact me directly and I will be happy to help you.
You can email me directly on email@example.com with a description of what you are looking to do and a contact number and I will be more than happy to get in touch.
Sterling has rallied back towards 1.72 following a statement from Reserve Bank of Australia assistant governor Guy Debelle who has reiterated the central bank’s position that the Australian dollar remains at “uncomfortably high” levels. Debelle also said that an early tapering by the US Fed of its $85 billion bond purchasing programme would have a good impact on the Australian economy as the move should help to weaken the AUD.
This will make this evenings FOMC minutes at 19:00 very interesting reading for anyone with an interest in the Australian Dollar. Any indication towards tapering of QE and look for GBP/AUD to push on towards 1.73/74. Of course no discussion and you could see a slight reversal for GBP/AUD.
Longer term I feel we will see the AUD weaken and would look for a shift to 1.75 and beyond. Anyone buying I would expect you to get more value if you can bide your time, however for sellers the current rhetoric from the RBA should be of concern.
To discuss the currency service we provide and the multiple contracts we can offer to help maximise your exchange then please contact the office on 01494 787478 or email Mike at firstname.lastname@example.org
Pound pushes on against the Australian Dollar as Mark Carney indicates the UK’s recovery is taking hold (Mike Vaughan)
The current topsy turvy trend for GBP/AUD is continuing. At the beginning of October the market was looking set for a push to 1.75 and beyond reaching a high of 1.74, however within a three week period levels had fallen back to 1.67, a fall of over 4%.
Today the pound has pushed on following positive unemployment data from the UK and a positive stance from Mark Carney head of the Bank of England. Following the release of todays Bank of England Inflation report Carney indicated that the UK recovery was taking hold. He indicated growth for this year is forecast to be 1.6%, up from 1.4% previously thought, and for next year, annual growth is expected to be 2.8%, rather than the 2.5% it predicted in August.
The report said: “In the United Kingdom, recovery has finally taken hold. The economy is growing robustly as lifting uncertainty and thawing credit conditions start to unlock pent-up demand.”
We are currently seeing a recovery from the pounds point of view with levels recovering from 1.677 last week to over 1.72 at the time of writing. For me I still feel there is more value for Aussie buyers and would look again for the pound to push on from current levels. However October’s trends are a timely reminder of how quickly the market can shift and how opportunities can be missed.
Should you have an upcoming money exchange to arrange and you would like assistance getting the best deal then contact the office on 01494 787478. Alternatively email me with a brief overview of your particular requirement and I will contact you to discuss how we can be of assistance and how the currency service we provide works. Email Mike at email@example.com
Sterling’s topsy turvy run against the Australian Dollar has continued with levels pushing through the 1.71 level for the first time in a month and bringing the pounds gains to over four cents in a two week period. Its big shift was following the non-farm payroll figures which improved pushing the date the FED may consider tapering QE closer, something in the long run that is likely to hamper the Aussie in my view.
Looking shorter term and this week is set to be very busy, particularly from the pounds point of view. Starting tomorrow we have the UK inflation figures at 09:30. Importantly will then be Wednesday’s unemployment figures, again at 09:30, followed by the Bank of England’s quarterly inflation report. This report and unemployment will give further hints as to the Bank’s future stance on interest rates and can affect the market accordingly.
Looking at data in Australia – watch out for tomorrows Westpac’s consumer confidence figures.
For me I feel the pound is set for a strong week against the AUD and could offer some better buying opportunities. To discuss the currency service we provide and the multiple contracts we can offer to help maximise your exchange then please contact the office on 01494 787478 or email Mike at firstname.lastname@example.org
Busy day for the pound with the Bank of England interest rate decision as GBP/AUD pushes back towards 1.70 (Mike Vaughan)
Today is likely to be a busy day for sterling exchange rates with the release of the Bank of England’s latest interest rate decision. It is widely expected that rates will remain on hold at 0.5% and so to will the banks stance on Quantitative Easing. As a result I wouldn’t expect too much movement for the pound, unless of course the bank springs a surprise.
Overnight the GBP/AUD rate has pushed towards 1.70. Unemployment figures remained at 5.7% as expected but comments from Reserve Bank of Australia (RBA) Governor Glenn Stevens stating that the dollar is “uncomfortably high” weakened the Aussie and suggests the RBA may consider intervening to make sure they get the outcome they want. This will make tomorrows RBA monetary policy statement important for anyone looking at AUD as any hint at future interest rate cuts and we could see levels push though the 1.70 barrier and beyond. For me I personally feel more value will be seen for AUD buyers but
anyone selling should consider their current position.
Should you have a money exchange to arrange and you would like to discuss the current trends and the currency service we provide then please contact the office on 01494 787478 and I will happily provide my thoughts and run through the various contracts we can offer. Alternatively please email me with a brief overview of your currency requirement on email@example.com
The GBPAUD pairing has already moved a fair amount this week along with the forecasts for its future. At the beginning of the week AUD Retail figures showed a steep improvement strengthening the AUD. On Tuesday the Central Bank of Australia did not change the interest rate for the dollar but hinted it could happen sooner than initially thought, weakening the dollar against a basket of currencies. Yesterday the Pound also strengthened considerably as PMI figures for the Service sector showed a huge improvement against both last month’s figure and the expected release. I don’t expect the volatile trading will slow down any time soon.
Later today there is some key GDP figures for the UK which is again expected to be revised up creating more Pound Strength. On Thursday we have UK Interest rate decisions, plus key Unemployment Figures for the AUD. There is a Monetary Statement from the Reserve Bank of Australia (RBA) on Friday and lots of key US job data which will have an impact on risk appetite and the demand for the AUD. All this means that this pairing will probably swing by maybe 2 cents between the high and low over the next 72 hours, adding $4,000 to a £200,000 purchase with AUD. It means if you are in the market and need to move funds within the next few days timing will be key and this is a service which we can help with if you wish. We have been helping people in this situation for over 12 years and with access to award winning exchange rates you can be comfortable in knowing that you will be saving money against your current provider; bank or broker.
Longer term I personally expect the GBPAUD to trend upwards, in the favour of the Pound. The reason for this is that the RBA continually tells us that they are concerned about the AUD strengthening, the head of the bank has made over 25 interest rate changes in his term and I expect another within the next few months. Saying that however and as you can see from this last week and next few days, the currency market will never move in a straight line so there will be opportunities if you are a seller, you just need to be in a position ready to go when an opportunity shows itself, PLUS you need to know when these are available so keep a close eye or contact us here. We can help with SPIKE NOTIFICATIONS and RATE ALERTS allowing you to make an informed decision.
Contact the author or register for any of these services by email – STEVE EAKINS – firstname.lastname@example.org or by using the number at the top of the page.