Tag Archives: RBA
GBPAUD exchange rates have hit 4-year highs recently as a number of interest rates cuts and negative comments from the RBA have taken effect. Earlier this week another comment from a senior banker down under claimed there is room for fiscal intervention in order to weaken the currency to keep exports competitive.
Poor GDP earlier this week has not helped the AUD and this give further rise for the need of another rate cut. This could weaken the Aussie further going into 2014. Depending on the news from the US tomorrow this could cause further Aussie weakness if the US jobs data is weaker than expected.
With GBPAUD rates having touched 1.81 and dropping marginally down this afternoon following the UK’s Autumns Statement and some good news on US GDP this was part of the reason for the Aussie’s minor fightback this afternoon.
If you would like to take advantage of current rates and to protect yourself against adverse market movement you may wish to lock into a forward contract which allows you to eliminate the risk of the currency markets moving further against you. For a free quote or an explanation as to how to save money when buying or selling Australian Dollars then feel free to contact me directly Tom Holian firstname.lastname@example.org
GBP has continued to make strides against the AUD recently, providing some of the best buying levels of the past three years. Whilst we have seen the market support any GBP loses around 1.70, a serious move towards 1.80 was unexpected. It now seems a realistic target level with rates putting pressure on 1.78 during Tuesdays trading and when you consider the Pound is benefiting from an improving economy.
On the other side the Reserve Bank of Australia (RBA) seem unconcerned about the recent AUD loses and even feel the currency still retains too much value, which could hamper their affluent trade industry moving forward. There is also a concern over China’s on-going demand for Australia’s raw materials and any slowdown in China’s economic growth will hamper the AUD even further, due to the likely negative effect this would have on Australia’s own economy. To me this indicates there is still scope for GBP/AUD rates to move higher and all eyes will now be firmly fixed on the release of tomorrows UK Gross Domestic Product (GDP) figures. If, as expected, the figures are bullish we could see another move towards 1.80 but do not expect this upward trend to continue indefinitely.
If you have an upcoming GBP/AUD requirement and would like to be kept up to date with all the latest market movements, or simply want to compare our exchange rates with your current provider, then please feel free to contact me directly at email@example.com. Alternatively, you can call one of our experienced brokers between 08.30-18.00 on 0044 1494 787 478.
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
GBPAUD exchange rates have continued to rise this week following the FOMC minutes earlier this week. Since the end of last month the Pound has gained by over 4% against the Australian Dollar and the potential tapering of QE by the US whenever that may be could send AUD even weaker. The less available money available this could lead to a sell off from riskier currencies including the AUD, NZD & ZAR. A fall in money supply is more likely to hamper these currencies and investors could therefore seek safe havens such as the USD or GBP.
The comments made by RBA Governor Glen Stevens said he was rather open minded that they are open to the idea of intervention to weaken the Aussie in order to remain competitive internationally. This has sent GBPAUD exchange rates to their highest level all year and even this morning the rates have continued to surge in an upwards direction in favour of Sterling.
My personal opinion is that any form of QE by the RBA is unlikely and that if anything they will look to cut interest rates in Q1 on 2014. On Wednesday Guy Debelle the RBA’s assistant governor also suggested that they would prefer the Australian Dollar to be lower than where it is at the moment. He also added that the future of the Aussie Dollar is heavily reliant on what happens when the US does decide to rein in its QE programme.
With the recent instability in Europe this has also led to a large sell off from riskier currencies with investors seeking safe havens. Sterling has been the main benefactor of the movement of funds as with our growth forecast recently having been increased investors have chosen Sterling as the safe haven of choice.
If you are thinking about buying or selling Australian Dollars then feel free to contact me for a free quote Tom Holian email@example.com
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 firstname.lastname@example.org 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.
GBP has spiked back up against the AUD during Wednesdays trading, with the AUD seemingly unable to break the 1.70 level with any consistency. With GBP/AUD rates now moving back towards 1.73, we are once again seeing some of the best buying opportunities of the past two years. It does seem as if the Pound is benefiting from an improving economy but do not expect Sterling to continue on this upward curve indefinitely, as the recent negative moves have shown us. Whilst the Reserve Bank of Australia (RBA) are concerned that the AUD was becoming too strong and negatively affecting their affluent export industry, the same can be applied to the Bank of England (BoE). BoE governor Mark carney has previously mentioned they do not want Sterling’s value to soar uncontrollably, for fear of alienating our own trade partners and distorting our own recovery process.
I still believe we will see GBP meet resistance around the current levels, so anyone with an AUD requirement may wish to take advantage of the recent spike.
If you have an upcoming currency requirement and would like to be kept up to date with all the latest movements on GBP/AUD rates, or any other currency pair, or simply wish to have a comparison with your current exchange provider, then please feel free to contact me directly at email@example.com. Alternatively you can call on of our experienced brokers on 0044 1494 787 478.
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
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
Sterling has strengthened against all major currencies as the UK services sector announced that it grew by its fastest pace in over 16 years. The PMI data showed a reading of 62.5 in October compared to 60.3 in September. If the figure is above 50 this signifies growth and confidence. With the RBA deciding this week to keep interest rates on hold at 2.5% the Aussie did gain some strength as some analysts thought there was an outside chance of a rate cut.
Employers in the UK are also hiring at their fastest pace since 1997 and with the Bank of England unlikely to amend interest rates until UK unemployment hits 7% predicted to be at that level in 2016 this news means that this could happen sooner. If the UK does decide to raise interest rates this would inevitably boost Sterling giving rise to some better buying opportunities but for me this is a long time away.
The National Institute for Economic and Social Research has this afternoon claimed that UK interest rates could be increased as early as 2015 which has also given rise to Sterling strength this afternoon. UK unemployment is at 7.7% and Mark Carney has said interest rates will not change until unemployment hits 7%.
If you’re considering buying or selling Australian Dollars and want to make sure you’re getting bank beating exchange rates feel free to email me for a free quote Tom Holian firstname.lastname@example.org