Tag Archives: Selling Australian Dollars

Will the Pound continue to improve against the Australian Dollar?

Sterling is now trading close to its best level against the Australian Dollar in almost two years as the Australian economy continues to shows signs of a struggle.

Australian inflation data is released on Tuesday and this could provide us with evidence of what the RBA may need to do in terms of monetary policy in the near future.

The RBA is under pressure at the moment as it appears as though the country is split between the east and the west with the western economy showing signs of a real slowdown compared to what is happening in both Sydney and Melbourne.

With the western part of the country so entrenched in the mining industry any slowdown in China will often cause the Australian Dollar to weaken and this is in part one of the reasons for the recent period of Australian Dollar weakness.

The Australian Dollar has also been affected by the decision made in the US to continue in their course of raising interest rates. In previous years Australia has had one of the highest interest rate yields available in the developed world.

However, the US has now overtaken them and this has caused global investors to move their money away from Australia and this has seen Sterling break past 1.83 during the course of this week providing some excellent opportunities to send money down under.

With the Bank of England due to meet on 10th May I think there is a strong chance of a rate hike coming in the UK as well and this could see further strength for the Pound vs the Australian Dollar. Therefore, if you’re considering selling Australian Dollars to buy Pounds it may be worth getting things organised in the near future.

For further information about how to save money when exchanging Australian Dollars and if you’d like to save money compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

GBP AUD Exchange Rates Rally on Uncertainty for Commodity Currencies (James Lovick)

The Australian dollar has weakened again after coming under pressure from the recent trade tariffs being imposed by China and the US. The Australian dollar as a commodity currency is impacted negatively when there is a threat to global growth and that risk is very real in the current climate. With tit for tat trade tariffs being imposed by both nations there have been concerns that things could escalate and end up in a global trade war.

Chinese President Xi Jinping made a conciliatory speech this morning and even suggested opening trade which would include a reduction on import tariffs on vehicles and even hinted at encouraging imports. It follows a tweet from Trump yesterday which highlighted that China has been slapping on tariffs to the tune of 25% whilst in the US that tariff has only been 2.5%

I don’t think anyone is expecting a fully blown trade war but there is still some nervousness about the trade disputes which also moves into the realms of the NAFTA trade agreement between the US, Canada and Mexico. The Canadian dollar is another commodity currency also feeling the pinch and how Trump handles these negotiations will almost certainly have a knock on effect on the Aussie.

Those clients looking to buy Australian dollars with pounds could see some more positive movement as the trade disputes intensify but at some point an outcome should be reached and this should be beneficial for the Aussie. Rates for GBP AUD are hovering around 1.83 and are proving to be some of the best levels we have seen for some time. A rally in commodity prices on brighter global outlook could see material gains for the Aussie and reverse the good gains that have been witnessed.

For more information on Australian dollar exchange rates and assistance in making a transfer either buying or selling Australian dollars then please get in touch with me at jll@currencies.co.uk

Australian Dollar on the ropes vs the Pound during March. – is there further weakness ahead in April? (Tom Holian)

The Pound has had one of its best months in recent times against the Australian Dollar hitting the best rate to buy Australian Dollars with Pounds since June 2016 when the EU referendum was announced.

The Australian Dollar has been struggling with an imbalance between the western part of the country where the mining industry appears to be slowing down whilst the east coast cities seem to be performing better.

The issue for the Reserve Bank of Australia is how they will be able to manage monetary policy going forward. The RBA is due to meet next Tuesday and I think the tone will be very dovish and any talk of a rate hike will be a long time coming.

Inflation has been struggling and the economy is showing signs of a slowdown in Australia and this is another reason for the weakness of the Australian Dollar with GBPAUD rates hitting 1.85 earlier on this week.

America now has a higher interest rate than Australia and this has meant global investors has begun to bypass the previously attractive yield available down under in favour of placing money in the US.

The trade wars between the US and China have caused big problems for the Aussie Dollar and I think there could be worse to come with this particular topic as Trump has already been rather vocal about putting America first.

Meanwhile the economic data from the UK has been improving and only recently the Bank of England announced a 7-2 vote in favour of keeping interest rates on hold which suggests a rate hike may be coming fairly soon with odds relatively high of a rate hike coming in May.

On Wednesday Australia announces the latest Retail Sales data and I think this could come out lower than expected putting further pressure on the Australian Dollar vs the Pound.

Therefore, if you’re in the process of buying Australian Dollars it may be worth holding on until later on next week.

However, if you’re selling Australian Dollars it may be worth organising this very soon.

If you would like further information about how to save money on exchange rates or you would like a free quote then email me directly with your requirements and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

Pound hits referendum high to buy Australian Dollars (Tom Holian)

As predicted in a number of my previous articles covering the Pound vs the Australian Dollar I did say that I thought we could see GBPAUD rates break through 1.80 this month.

During Friday’s trading session my prediction came true after the one of the RBA members Debelle suggested that Australian interest rates are likely to be kept on hold for quite some time to come.

This saw GBPAUD rates move past 1.80 creating some excellent opportunities to buy Australian Dollars with Sterling.

Indeed, the Pound had a good week against most of its counterparts in anticipation of a lot of movement during the course of next week.

On Tuesday the UK releases its latest inflation figures for year on year with the latest Consumer Price Index for February.

Inflation is currently at 2.9% which is a long way above the target of 2% so another high reading could provide support for another interest rate hike in the UK.

Indeed, interest rates were raised towards the end of 2017 following a long run of high inflation so on Tuesday this could provide further justification of another rate hike currently 75% priced in for May.

On Wednesday UK unemployment figures are due to be published which are close to the lowest since records began over 40 years ago. However, one issue is that of Average Earnings which will be announced at the same time as the jobs data. Wages are struggling to keep up with inflation so this could see a potential banana skin for the Pound.

On Thursday the Bank of England will announce their latest monetary policy and although there is almost no chance of a rate hike if there are any suggestions of this coming in the near future I expect Sterling to rise in the value against the Australian Dollar.

However, arguably the biggest impact for anyone with an Australian Dollar requirement will come on Thursday when the EU Summit takes place. At the moment the future of the UK’s relationship with the European Union is very uncertain and uncertainty often results in heightened volatility.

Therefore, if you’re concerned about what may happen it may be worth getting things organised prior to Thursday.

If you would like further information about how to save money when buying or selling Australian Dollars and would like a free quote then contact me directly and I look forward to hearing from you.

Email me directly Tom Holian teh@currencies.co.uk

 

AUD Weakness after Hints on US Trade Policy (James Lovick)

The Australian dollar came under pressure in afternoon trade yesterday taking considerable losses against most of the major currencies. Rates for GBP AUD have climbed higher breaking over 1.79 for the pair which has created a good opportunity for those clients looking to buy Australian dollars with pounds.

The weakness in the Aussie has stemmed from events in the US rather than negative data down under. The new economic adviser to US President Donald Trump has signalled he is in favour of a strong US dollar whilst also signalling that he is preparing for another round of tariffs which will target Chinese exports.

The prospect of a trade war appears to be looking more likely on the back of these comments and the commodity currencies including the Australian dollar are likely to be impacted upon badly. The Canadian dollar in particular has come under substantial pressure on the back of protectionist policies and the Aussie may have further to fall. Clients looking to buy Australian dollars in these coming weeks could see some even better opportunities to purchase with a move higher to 1.80 for the GBP AUD pair looking likely. Whilst the steel and aluminium tariffs imposed so far have had little real market reaction any other measures could see the Australian dollar come under renewed pressure.

The dollar had until recently been supported following upbeat trade data from China which is normally seen as a vote of confidence for the Aussie but the comments from US economic adviser Larry Kudlow. Australia’s largest export market is China and so when the Chinese economy is performing well it is generally a good sign that global economic growth is being seen and Australian exports are on the up. Any perceived slowdown in economic growth is likely to result in a rocky ride for the Aussie going forward.

For more information about the Australian dollar and how to try and make the most of any opportunities for buying or selling Australian dollars then please get in touch with me at jll@currencies.co.uk

Could the RBA meeting on Tuesday be the catalyst to send GBPAUD rates up to 1.80 next week? (Tom Holian)

The Pound has maintained its recent run of good form vs the Australian Dollar during the course of the week ending Friday afternoon with the Interbank level trading at above 1.78 for GBPAUD exchange rates.

Australian inflation data came out lower than expected earlier this week and as we have seen with the UK back in November if inflation rises then the general policy is to raise interest rates.

With inflation down under falling then this means that the Reserve Bank of Australia are much less likely to be looking at raising interest rates in the near future.

On Wednesday evening the US Federal Reserve confirmed that they would be keeping interest rates on hold for the time being although the tone was rather hawkish, which means that a rate hike could be coming.

Indeed, the expectation is currently at 88% that an interest rate hike may occur in March and this is why we have seen the Australian Dollar continue to remain weak.

Global investors are currently offloading the AUD, NZD and ZAR which typically used to have very attractive yields on interest.

However, with the US looking at increasing interest rates as well as having a very strong economy as proved with Friday afternoon’s fantastic jobs report creating 200,000 new jobs in January, money is being ploughed into the US at the moment.

On Tuesday, Australia releases its latest Trade Balance Figures as well as Retail Sales and both will be key to determining what will happen to GBPAUD exchange rates during the course of next week.

The RBA will also announce its latest interest rate decision so if they are quite cautious in their approach could this send GBPAUD rates towards 1.80?

If you have a need to make a currency transfer buying or selling Australian Dollars in the near future then feel free to contact 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

GBP AUD Moves Higher Towards 1.75 (James Lovick)

The Australian dollar is reacting heavily to events in the US at present and the tone coming out of the US Fed is slowly starting to soften. The Aussie dollar is heavily impacted by the level that interest rates are set in the US and as rates rise in the US this should in theory put pressure on the Australian dollar.

The expectation was for three rate increase in the US throughout 2018 although that it may just be a case of a maximum of two and this is creating a bit of volatility for the Aussie. It was starting to look like the Reserve Bank of Australia may need to hike to accommodate such policy around the world but that first interest rate hike from the RBA may not be as forthcoming as the markets had expected and this is seeing the dollar weaken off.

GBP AUD has seen a small pickup in the rates with levels moving closer to 1.74 for the pair. A move higher to 1.75 looks like a realistic target for those looking to buy Australian dollars although the ongoing Brexit negotiations are also playing a role in where rates are heading.

Clients selling Australian dollars could see a return to 1.70 for AUD GBP on some strong economic data down under but the risk is that the ongoing Brexit negotiations could dictate the path of sterling. The Brexit discussion will soon move on the heated issue of future trade and the pound is likely to see considerable shocks as news is released. Anything positive from the UK and EU that there is likely to be a future trade deal is likely to see the pound rally further.

Australian unemployment data are released overnight and could create some volatility for the Aussie whilst Chinese GDP data could also impact on the rates due to Australia’s large export market to China.

To discuss how these event have a direct bearing on your currency requirement please feel free to get in touch with me at jll@currencies.co.uk and I will be happy to talk you through your options and help you with the transfer.

Pound vs Australian Dollar Forecast for 2018 (Tom Holian)

The Pound has had a fairly good year vs the Australian Dollar getting close to hitting 1.80 on a number of occasions towards the end of the year.

The commodity based currencies including the AUD, NZD and ZAR have all weakened generally during 2017 owing to the global slowdown.

Owing to the ongoing Brexit saga the Pound has had an indifferent year against both the Euro and the US Dollar but has sustained its strength against the Australian Dollar.

However, what has become apparent is that Australia could soon lag behind the interest rates set out by the US which could cause a lot of global investors to shy away from the Aussie Dollar next year giving the Pound some support.

The Australian Dollar is also heavily reliant on what happens in China and with the value of iron ore having moved a huge amount during the last few weeks both up and down this has caused a lot of volatility for GBPAUD exchange rates.

I think one of the biggest factors influencing GBPAUD rates is that of Brexit so 2018 could be the defining year as to whether we see the Pound getting back to its recent highs vs the Australian Dollar.

In the short term on Wednesday the latest Commodity Index is due for release which measures the values of commodity prices which is an important factor in the value of the Australian Dollar as they are such a large exporter as natural resources.

Therefore, if you’ve got a short term currency transfer to make then keep a close eye out on what happens early Wednesday morning.

If you have a currency requirement to make during 2018 and would like to save money when buying or selling Australian Dollars compared to using your own bank then contact me directly for a free quote.

Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to save you money when making a currency transfer.

For further information or a free quote contact me directly Tom Holian teh@currencies.co.uk and I look forward to hearing from you.

Happy New Year and thanks for reading!

 

Rates improve to sell Australian Dollars into Pounds (Tom Holian)

The Australian Dollar has improved during the course of December after getting close to breaking past 1.80 just over a week ago.

The Australian Dollar has fought back against Sterling after the problems with the ongoing saga of Brexit.

Indeed, although talks have been allowed to move forwards towards phase two of the discussions we have not really seen any gains for the Pound vs the AUD as we are still headed for a long period of uncertainty ahead.

Australian employment figures have come out a lot better than expected recently which has provided the Australian Dollar with some recent strength against the Pound.

This has led to the possibility of a potential interest rate hike coming in Australia as it means the economy could possibly cope with a further rate hike and that has strengthened the Australian Dollar against the Pound.

Indeed, with all the uncertainty from the Brexit saga ongoing all the commodity based currencies including the NZD & South African Rand have improved against Sterling.

On Tuesday, Australia releases its latest minutes from the last RBA meeting.

If we see any hints towards a rate hike or any appetite for this in the new year then we could see further strength for the Australian Dollar against the Pound so make sure you’re ready to move quickly if required.

If you have a need to make a currency transfer in the coming days, weeks or months then feel free 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 compared to your bank or another currency broker.

Even a small improvement in the exchange rates can make a big difference so feel free to to email me and you may find you could save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on teh@currencies.co.uk and I will respond to you as soon as I can.

 

How long will this period of Australian dollar strength against sterling?

My recent article this weekend suggested that there was a possibility that GBPAUD could reach 1.80 in the upcoming weeks and until late yesterday afternoon this prediction looked very likely. However the DUP at the close of business yesterday evening announced they are unhappy that UK Prime Minister could offer a different border control for Northern Ireland compared to the rest of the UK. Off the back of the news the pound lost ground against all of the G10 currencies and the Australian dollar.

Later that evening, the Reserve Bank of Australia held interest rates at 1.5%, which was no surprise, however surprisingly the Reserve Bank of Australia’s commentary was extremely positive which strengthened the Australian dollar further against the pound. With the amount of strength we have seen for the Aussie rumors the Reserve Bank of Australia may appear to be backtracking and actually could raise interest rates early next year. If this is the case, it’s quite clear that the RBA have been jawboning in an attempt

However, I’m still of the opinion that the UK will secure some kind of deal in the upcoming weeks with the EU which will mean trade negotiations will begin in the New Year. If this is the case this period of strength for the Australian dollar against sterling could be short lived therefore I would recommend any client converting Australian dollars into sterling should look to make arrangements sooner rather than later.

If you are converting pounds into Australian dollars as you are emigrating or if you are leaving Australia to move to the UK and need to buy pounds in the upcoming weeks, months or years feel free to email me with the 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! **