Tag Archives: reserve bank of australia

Will GBPAUD reach back to 1.70?

If you are holding pounds and looking to buy Australian dollars it has been a stressful period with the pound failing to spike as many had predicted on the back of the UK election. There was a belief the pound would rally to perhaps over 1.80, the Aussie having been on the back foot as Chinese data was failing to live up to expectation. Lately however the Chinese data is looking much better which, in conjunction with the pound sliding as the hung parliament divides opinion over the British pound, has seen the GBPAUD rate slip too. If you need to buy or sell Australian dollars making some plans around the next twist and turn is crucial since the current market is not pointing clearly in either direction.

We offer detailed insight and strategy to clients looking to move large volumes of currency around the world generally following property transactions or business transfers. This is because when moving such large volumes of say 50,000 GBP up to multi-millions a small difference in the exchange rate can mean a huge difference in the amount of currency you receive. Getting the timing and planning right is crucial to getting the best deals on the rates.

For clients looking towards the GBPAUD exchange rate pairing looking for better rates this week could offer some fresh opportunities with the latest fresh news over the UK’s political situation and also news relating to the Chinese economy. Since the Chinese economy is so closely linked to the Australian dollar keeping up to date with information here is crucial to getting the best rates. If you have a transfer to make this week has a number of releases which could see the GBPAUD rate move say 1 – 2 cents presenting a quick opportunity for savvy buyers and sellers!

For more information on the best rates and how to manage your exchange please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. If there is anything I can help with please don’t hesitate to contact me directly.

Pound to Aussie Dollar range-bound, but where to next? (Joseph Wright)

The Pound to Aussie Dollar exchange rate has been trading between 1.66 and 1.68 for a few days now, as the pair appear to have consolidated below 1.70 in the wake of the disappointing election outcome for Sterling bulls.

As of yet there is no official agreement between the Conservatives and the Democratic Unionist Party (DUP) although speculation is mounting as to the amount the Conservatives will have to pay for the coalition, with some speculating amounts of up to £2bn.

Moving forward I’m expecting any news of the coalition to have a potential impact on the Pound to Aussie Dollar buying rate, which is where keeping in touch with us can really help as we’re able to act whenever there’s a big short term move.

Brexit negotiations are now also underway, which is another issue for the government to deal with along with the ongoing Grenfell Tower tragedy and the recent terrorist issues.

On the other hand the Aussie Dollar has been under pressure in recent weeks as the Chinese economy appears to be slowing, which is a negative for the value of AUD as the Australian and Chinese economies are key trading partners.

With both currencies coming pressure for different reasons, it could be that the weaker of the two that results in further price movement for the GBP/AUD pair.

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.

 

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.

US Interest Rate decision key for GBPAUD currency exchanges!

The Federal Reserve bank in the United States will unleash their latest Interest Rate decision  tomorrow evening at 7pm UK time. The pound to Australian dollar exchange rate is looking precarious as we approach this latest news, but also news from the Bank of England this week. Overall I would not be surprised to see the Australian dollar weaker as the market finds that betting on the US dollar’s ascendancy is much more interesting than backing the Australian dollar.

The Australian dollar is holding one of the higher interest rates of the leading global economies at 1.5%, with a hike in the US bringing them to just 0.25% below, the expectation is that the Australian dollar will be sold off as investors adjust their positions to reflect more of a holding of the US dollar, believing the US dollar will rise further in the future.

If you have a transfer buying Australian dollars in the future Thursday might see some better rates but should the Fed decide to hold off raising rates, we could see the US dollar weaken which would see the Aussie gain strength. The Aussie could also find favour against a weaker pound which is having a very tough week following the unexpected outcome from the UK election.

Should you be considering buying or selling Australian dollars in the future current evens are very important, Aussie buyers will I am sure be very keen to try and get above the magic 1.70 mark again although of course they could easily find themselves getting worse should events take an unexpected turn as they can!

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk. Thank you for reading and I look forward to hearing from you!

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.

 

Will the issues surrounding the Australian property market weaken AUD further? (Joseph Wright)

The Pound to Australian Dollar exchange rate hit 1.7430 at it’s highest point during today’s session, although at the time of writing the Pound appears to have lost all of today’s earlier gains.

It’s difficult to tell which way the rate will move next, although I think that it will be underlying weakness that results in the next big move for the GBP/AUD pair as both currencies are coming under pressure for differing reasons.

China was downgraded by Moody’s (a credit rating agency) for the first time in 30 years due to slowing growth in the region although markets haven’t overreacted as a slowing in growth was inevitable.

This could spell bad news for the Aussie Dollar moving forward due to the interconnected economies (Australia and China) being quite reliant on each other. At the same time further talk of the property markets in Sydney and Melbourne overheating are surfacing again, and with a slowdown in the construction sector down under becoming a talking point as well I think there could be issues for AUD later down the line.

The Pound has also come under pressure due to the terrorist attack earlier this week, and with the election just around the corner we could see further headwinds for the Pound as we get closer to the election date (the 8th of June).

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.

Will the pound to Australian dollar rate rise or fall on the UK election?

Most reports suggest the pound is likely to rise if Theresa May wins a strong majority in the UK election on June 8th. Potentially this could see GBPAUD busting through the 1.80 level but there are of course never any guarantees with the currency markets! I am of the impression that expectations for sterling have actually been set too high and I wouldn’t be surprised to see the pound coming under pressure. I do actually feel the 1.70 level could be in focus and that after a few tricky weeks for AUD sellers the trend will now actually favour selling AUD for sterling, although of course we are unlikely to see a return to quite the same rates as we had earlier in the year.

The polls currently show Labour winning many more seats than previously expected which would see the Tory majority increase but not perhaps by as much as many believed some weeks ago. The general impression is of course a Tory and Theresa May win but, with the market pricing in a larger Tory win than expected the risk to me is to the downside, ie sterling could fall.

If you have a transfer to consider in the future then making some plans around this historic event is clear wise. We are here to help with an exchange rate I am positive will save you money over other options but also offer support and information for any transfer you might be planning. Understanding how the banks operate and the processes involved to transfer funds can save you lots of time and hassle.

My name is Jonathan Watson and I have worked as a specialist currency broker for close to ten years. If you need to move money overseas I am very confident a conversation with me will help provide some insight and could well save you thousands through a better rate and information on when to execute any transaction.

For more information at no cost or obligation please speak to me directly by emailing jmw@currencies.co.uk briefly outlining your position and preferably providing a contact number to discuss your position through thoroughly.

Thank you for reading and I look forward to hearing form you.

What next for Sterling vs the Australian Dollar? (Tom Holian)

The Pound has had a mixed week vs the Australian Dollar after Australia announced another 37,400 new jobs last month compared to the expectation of just 5,000. However, although this is good news employment fell by over 11,000.

The mixed data caused a brief bout of strength for the Australian Dollar vs the Pound but since then we have seen GBPAUD exchange rates once again hit 1.75 on the Interbank level.

The Australian Dollar has been under pressure for the last two months caused by both the slowdown in the US as well as China and a fall in the value of commodities.

The problem that the Australian economy is facing in general is that both the Melbourne and Sydney property markets are still very buoyant but the economy down under is struggling particularly the mining industry.

Therefore, under a more settled environment the Reserve Bank of Australia may have looked to cut interest rates in an attempt to rejuvenate the economy but if they do this would simply just exacerbate the problem for the Australian property market.

Therefore, this is part of the reason why in my opinion the Australian Dollar has weakened recently.

Also, if we turn the focus towards what is happening politically in the UK we appear to be more settled and the likelihood is that the Conservatives will win next month’s general election due to take place on 8th June.

Typically, when the existing government wins the next election this tends to provide the economy involved with a positive boost as it gives businesses stability and more often than not this results in Sterling strength.

However, this time as there appears to be no obvious opposition to a Tory win next month so it could be argued that the exchange rate movement for GBPAUD exchange rates is already priced in.

If you would like more information or a free quote when buying or selling Australian Dollars then contact me directly. Working for one of the leading currency brokers I am able to offer you bank beating exchange rates.

Tom Holian teh@currencies.co.uk

 

 

Where next for GBPAUD currency rates?

The Reserve Bank of Australia released their latest meeting minutes last night which showed no real change in their views on the economy or interest rates. They appear to be stuck in a familiar holding pattern with no large expectations of a move in one direction or the other. The general impression is longer term we will see the interest rates begin to rise down under but it doesn’t appear to be on the cards just yet. If you are looking to buy Australian dollars we could see some big improvements around the time of the UK election but of course there are no guarantees, we could easily see the pound lower if Theresa May doesn’t fulfill the high expectations!

If you need to buy Australian dollars with pounds then we are close to the best rates in 2017 with the possibility of rates improving further. I personally believe sterling will come under pressure in the run up to the UK election before rising after. If you have a transfer buying the Australian dollar moving on this improvement or after the election is I believe sensible. And for those selling Australian dollars to buy pounds the opposite is true. You could be looking at quite a unique opportunity to buy the currency from both angles in the next four weeks, being prepared for the movements is key!

If you have a transfer to make buying or selling Australian dollars in the coming weeks making plans in advance is sensible to try and navigate the volatility. We are in for a truly tricky period where rates could suddenly move a good few cents. As we often say when the Aussie moves it doesn’t just move a couple of cents it can move 5-10 cents in a short space of time, just like happened recently.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk to get a full overview of your position and all of the ins and outs of transferring funds internationally. We are here to help with the planning and execution of any deals you will need to make sure you don’t miss out should events take an unexpected turn.