Tag Archives: RBA

GBPAUD breaks through 1.70 (Dayle Littlejohn)

In recent weeks the pound has been losing ground against the Australian dollar and exchange rates have fallen from 1.75 to 1.67. However today Governor of the Bank of England Mark Carney has given Australian dollar buyers something to smile about, as UK interest rates could be hiked in the upcoming months, which would provide strength for sterling as investors look for higher returns on their investments.

The Governor announced today that the MPC will be debating interest rates in the upcoming months and a rate rise all depends on business investment, wage growth, Brexit negotiations and costs for labour.

Off the back of the positive news for the pound GBPAUD has now breached 1.70. To put this into monetary terms the 3 cent improvement this week will save clients £10,000 when purchasing 1,000,000 Australian dollars.

Looking further ahead I expect the pound to continue the upward trend for the remainder of the week and into next week as UK Prime Minister Theresa May should be able to put the election behind her when MPs vote on the queens speech later this week.

The leader of the opposition Jeremy Corbyn has stated he will try to make amendments to the Queens speech but in reality I can’t see any conservative MP voting against their own party, therefore this story should be over by this time next week.

If you are buying or selling Australian dollar in the upcoming weeks, months or years feel free to email me with the reason for your conversion (company invoice, buying a property) and the timescales you are working to and I will email you with my forecast and the process of using our company drl@currencies.co.uk.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you minutes and in the past I have saved clients thousands! **

GBPAUD exchange rates fall to a 8 week low! (Dayle Littlejohn)

Pound vs Australian dollar exchange rates have reached an 8 week low this week due to sterling devaluing and the Australian dollar strengthening. To put this into monetary terms over the last 2 weeks exchange rates have dropped 5 1/2 cents which means a 200,000 Australian dollar purchase is now £3,850 more expensive.

Starting with the Australian dollar GDP numbers have remained resilient this month, and positive business sales growth coupled with increased consumer spending has strengthened the Australian dollar. In addition the Philip Lowe (Governor of the Reserve Bank of Australia) also commented earlier in the week that the global economy is in better shape than previous years which is helping the commodity currencies. This was a surprise statement as iron ore prices continue to remain under pressure due to a slow down in China.

As for the pound the Governor of the Bank of England gave a dovish statement yesterday and confirmed the UK are not in the position to raise interest rates anytime soon even though three members of the Bank of England voted to hike rates only 6 days ago. Furthermore Brexit negotiations have begun and are putting pressure on sterling as the market is nervous about a deal being struck in regards to the divorce settlement.

In my opinion it is impossible to predict how Brexit negotiations will impact the pound. Positive news will strengthen the pound negative will do the opposite. I am optimistic that deal will be struck eventually however other traders on the floor are not. If you are purchasing pounds with Australian dollars or vice versa I would recommend getting in touch and I will keep you up to date with regular information until you are ready to convert drl@currencies.co.uk.

If you are buying or selling Australian dollars in the upcoming months and want to achieve rates of exchange that are better than your bank, whilst receiving regular economic information feel free to email me with the currency pair (AUDGBP, AUDEUR, AUDUSD) the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with my forecast and the process of converting currency. My direct email address is drl@currencies.co.uk and I look forward to receiving your email.

Will the pound continue to fall against the Australian dollar (Dayle Littlejohn)

In the run up to the UK general election GBPAUD exchange rates remained buoyant around the mid 1.70s which was a surprise to the traders here as the pound was falling across the board against all of the major currencies. I put it down to the Australian dollar weakening due to iron prices and the slow down in China.

Once the general election exit polls were released the pound started to tumble against the Australian dollar and rates continued to fall once it was announced that Theresa May had not won an outright majority. GBPAUD exchange rates have dropped 8 cents since the election result which means if clients are converting 400,000 Australian dollars back to sterling they will receive an additional £10,800.

Looking further ahead I find it difficult to see how the pound will gain any momentum until a government has been formed. At present UK Prime Minister Theresa May is trying to form a minority government with the DUP. Many have questioned the alliance as some of the DUP policies and views seem controversial and not supported by the Conservatives.

Personally I believe a government will be formed in the upcoming days which could provide some stability for the pound. Thereafter Theresa May will turn her attention to Brexit negoations and with the election result a softer Brexit looks more likely which actually improve the pounds value as remaining a part of the single market could actually occur.

For Australian dollars sellers buying sterling, it appears China are going to continue to slow and economists are predicting iron ore prices will follow which will have a negative impact on the Australian dollar. The spike we have seen over the last 5 days may be worth taking advantage of.

If you are trading GBPAUD in the upcoming weeks, months or years and want to save money feel free to email me with the reason for your conversion (company invoice, buying a property) and the timescales you are working to and I will email you with my forecast and the process of using our company drl@currencies.co.uk.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you minutes and in the past I have saved clients thousands! **

 

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.

 

Australian dollar falls due to China’s credit rating (Dayle Littlejohn)

This morning China’s credit rating has been cut by Moody’s by one level to A1. A1 is the fifth highest credit rating by the well established Moody’s, and indicated that the country can meet debt requirements however are susceptible to change due to economic changes.  The reason why China have been cut is that debt levels are continuing to rise and will continue to rise in a bid to keep the economy growing. Moody’s stated “Rising Debt will erode China’s credit metrics, with robust growth increasingly reliant on policy stimulus.”

The slowdown in China is having a direct impact on Australia’s largest export Iron Ore. Fortescue, on of the largest producers of Iron ore have warned that Iron prices could continue to fall in the upcoming months. Since February Iron ore has dropped from $95 dollars per tonne to $60 dollars. With this in mind I wouldn’t be surprised to see the Australian dollar lose value in the upcoming months. Good news for Aussie buyers bad news for Aussie sellers.

However when buying or selling Australian dollars it is always important to analyse the other currency you will be converting. If you are a regular reader you will know that the brokerage I work for is based in the UK and therefore I write many articles including the pound. In regards to GBPAUD exchange rates the pound is under pressure due to the upcoming UK General Election and Brexit negotiations however I wouldn’t be surprised to see a slight rise in the upcoming weeks.

The problem I have longer term for Australian dollar buyers that will be using sterling is that any point I believe Brexit negotiations could stall due to the €100bn divorce settlement. If this occurs I expect exchange rates to fall back to the levels we become accustom to over the last 6 months (1.60).

If you are buying or selling Australian dollars in the future, I would strongly recommend getting in contact to discuss your situation. 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.

Will the Pound recover its losses against the Australian Dollar? (Tom Holian)

The Pound has ended the week with two consecutive days of falls vs the Australian Dollar after a difficult day of UK economic data on Thursday.

The Quarterly Inflation Report showed that inflation is predicted to hit 2.8% with average earnings hitting just 2%. Therefore, this means that the cost of living is rising whilst wages are falling.

This led to the Pound falling against the Australian Dollar after making consistent gains for a number of weeks. Indeed, compared to a month ago when rates were struggling to break past 1.60 we have now seen GBPAUD rates trade as high as 1.77 during the course of this week.

However, it appears at least for the moment that the positive run for Sterling vs the Australian Dollar has now come to an end.

On Tuesday the Reserve Bank of Australia will release their latest minutes from their previous meeting.

With the central bank having kept interest rates on hold for the 9th consecutive month recently I think we could see a small weakening for the Aussie Dollar vs the Pound if the RBA confirm that there is little appetite for any change in interest rates.

During this month with the Tories set to dominate the general election I think this could result in further stability for the UK which in turn could help the Pound challenge towards 1.80 to buy Australian Dollars.

Having worked in the foreign exchange industry since for almost 15 years for one of the UK’s leading currency brokers I am confident that not only can I save you money on exchange rates compared to using your own bank  but also help you with various options including forward contracts which allow you to fix an exchange rate for a future date for a small deposit.

To find out more information or a free quote when buying or selling Australian Dollars then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

GBP/AUD hits 7 month high! (Daniel Johnson)

Will the Pound continue to strengthen?

Sterling has strengthened significantly against the Australian Dollar of late. GBP/AUD now has hit 1.74, the highest levels in the last seven months. This is due to impressive UK PMI (Purchase Managers Index) figures and UK construction data.

Despite positive data from down under from the service and tourist sector, there  are worrying signs of an overpriced property market. It is a similar situation to London with properties in high wage areas becoming far too overpriced, specifically Melbourne and Sydney. The problem is being exasperated by foreign investors willing to pay the excessive prices. During the early hours we will see the release of Australian housing sector figures and this could well influence GBP/AUD levels. New House sales being the key data release.

The Reserve Bank of Australia (RBA) also kept rates on hold at 1.5% for the ninth month in a row.

Australia are heavily dependent on the Chinese purchasing their raw materials and we have sen a decline in Australian trade balance date which has caused the Aussie to dip in value. Chinese growth although positive is slowing.

Domestic Factors that will influence GBP/AUD

A snap election would usually weaken the currency in question, but on this occasion we have see it strengthen. It was a shrewd move by Theresa May to call an election when the competition is so weak. Sun Tzu would be impressed. With the Conservatives clear favourites to win the election it has seen investor confidence grow as a conservative government is seen as a positive for the UK economy. The pound has rallied as a result. I would not expect a surge in strength if they are elected however as the market moves on rumour as well as fact and I think a conservative victory has already been factored into current GBP/AUD levels.

If you have a currency exchange to perform in the coming days, weeks or months then you are more than welcome to speak with me personally as I will be more than happy to assist you both in trying to time a transaction and getting you the top market rate when you do come to make your transfer. A small improvement in a rate of exchange can make a huge difference, so it is well worth taking a couple of minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can contact me (Daniel Johnson) on dcj@currencies.co.uk and I will endeavour to get back to you as soon as possible. Thank you for reading.

 

 

Pound to Aussie Dollar rate hits a new 2017 high as inflation data disappoints, will the trend continue? (Joseph Wright)

The Pound has hit a new high against the Aussie Dollar today, as the pair have hit 1.7220 at one stage during today’s trading session.

The upward movement for the Pound begun early mostly due to Aussie Dollar weakness, as in the early hours of this morning the Australian inflation data came out worse than expected on both an annual and monthly basis albeit not drastically.

At the same time Sterling has performed well across the board during today’s trading session and at the time of writing the currency is up against all major currency pairs.

There has been talk of the Australian economy slowing in recent months, and with the US Fed Reserve now likely to continue to raise interest rates throughout the year I think the Aussie may end up trading quite considerably lower against the Pound as the year progresses. An increasing interest rate in the US could be bad news for the Australian Dollar as its likely that investors would rather hold their funds in the US due to the higher level of security it offers.

Limited demand for the Aussie Dollar is the reason I think we could see the GBP to AUD rate improve as the year goes on, but I do think that if the conservatives in the UK don’t win the election in June we could see another sell-off for the Pound.

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.

Sterling makes gains due to Australian housing market (Daniel Johnson)

Exaggerated Property Pricing hinders the Australian Dollar

The pound suffered against the Australian Dollar on Friday due to poor manufacturing and industrial data. Sterling has been rallying against the majority of major currencies since the invocation of article 50 and more confidence has returned to investors due to more certainty regarding trade negotiations post-brexit.  Sterling has made more significant gains against the Australian Dollar however due to concerns over the considerable rise in property prices down under. There is the feeling that exaggerated house prices could hinder domestic growth.

Melbourne and Sydney are the main culprits. It is a similar situation to that of London, with more people being drawn to the larger cities in the hope of a higher wage. The Reserve Bank of Australia (RBA) may keep  monetary policy accommodating as house prices continue to rise.

Home loans data and investment figures are both down and the Aussie has also faltered against the US dollar, hitting a three month low. The Syrian air strikes could also have been a catalyst as investors leave riskier currencies for safe havens such as the green back or the Swiss Franc.

UK Inflation could cause volatility on the exchange

Inflation data in the UK is due out tomorrow and could cause movement on GBP/AUD. The weak price of the pound has caused imported goods to rise in price and these increases could hit consumers. If there is a rapid rise in inflation without an increase in the average wage it will prove detrimental the UK economy. Keep a keen eye on this release.

If you have a currency requirement I will be happy to assist. It is vital to be in touch with an experienced broker in order to maximise your return. If you let me know the currency pair you are trading, the size of your trade and your time scale I will endeavour to produce a trading strategy and the correct contract to suit your individual needs. If you have a currency provider already I will happily perform a comparison and I am very confident I can demonstrate a considerable saving. I am happy dealing with commercial trades, but my speciality is property transfers. I can ensure the whole process runs smoothly and cost effectively, taking the stress out of your purchase or sale for that matter. We have been in business for over sixteen years and are regulated by the FCA.  Please do get in touch if you would like my assistance. I can be contacted at dcj@currencies.co.uk. Thank you for reading and I look forward to hearing from you.

 

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.