Tag Archives: Selling Australian Dollars

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.

 

GBP AUD Lower Ahead of Queens Speech (James Lovick)

GBP AUD exchange rates remain on the back foot after that UK snap general election created political uncertainty in Britain and which continues to weigh on the price of sterling. The Queens speech on Wednesday is the big event of the week in Britain and high volatility is to be expected. Any political attacks or attempts to vote down the Queens speech by Labour leader Jeremy Corbyn could see the pound weaken further against the Australian dollar.

As things stand no agreement has been made between the Democratic Unionist Party (DUP) and the conservative government so there could be fireworks tomorrow at the Queens speech. However if all goes smoothly at the opening of new parliament then GBP AUD could see a rally back toward 1.70. This may not come tomorrow but once there is an understanding of how the conservative government will be running with the support of the DUP then it should lend support to the pound.

Selling Australian Dollars

Clients looking to sell Australian dollars would be wise to consider taking advantage of the recent dip in the price of sterling as some economic indicators down under are starting to look wobbly. The Australian housing market in particular is being closely watched and concerns have been raised. The combination of booming house prices and rising household debt has even caused Moody’s to cut its ratings on some of Australia’s banks on these concerns.

The Reserve Bank of Australia’s minutes released this morning document this view on the housing market and there could be more developments in the coming weeks and months. Clients looking to buy Australian dollars could see some better opportunities if there is a turn in the sector.

If you would like further information on Australian dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Bank of England vote causes short term spike for the Pound vs the Australian Dollar (Tom Holian)

The Bank of England have caused a big stir in the foreign exchange markets during today’s session as we have seen a 5-3 split in favour of keeping interest rates on hold.

For the last few months the split has been 7-1 but owing to rapidly rising inflation this is the reason used for the change in the voting pattern.

This vote brings with it a suggestion that interest rates in the UK may be rising sooner than expected and this has helped the Pound to make gains vs the Australian Dollar.

Inflation is now at 2.9% which is close to the highest level in 4 years and with the target set by the Bank of England for 2% this is becoming a problem for the British economy.

With UK Average Earnings falling and inflation rising this is causing the cost of living to go up which is not good news so an interest rate hike could be coming sooner.

I still think this positive jump for the Pound vs the Australian Dollar is short term as the UK has still yet to form a majority government and as yet we do not know when this may happen. When a hung parliament occurred last time it could a total of 20 days before it was sorted.

The other problem that Sterling faces is that of the Brexit negotiations which are officially due to start on Monday and the likelihood at least in the short term is that the talks will be problematic. Therefore, if you’re thinking about buying Australian Dollars it may be worth organising in the near future.

Having worked in the foreign exchange markets since 2003 for one of the UK’s leading currency brokers I am confident not only of being able to offer you better rates of exchange when buying or selling Australian Dollars but also help you with various contract types.

If you would like further information or for a free quote then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

 

 

AUD GBP Gains 5 Cents in One Week after UK Election Shock Result (James Lovick)

The pound has fallen lower as political uncertainty continues to weigh heavily on the pound. GBP AUD fell 0.7% today taking levels below 1.68 for this pair. Rates have now dropped more than five cents for this pair in the last week which has created an excellent opportunity to sell Australian dollars dollars in what has been a very sudden movement. The improved outlook from the Reserve Bank of Australia (RBA) which pointed to a better growth outlook whilst discarding concerns over the property market has been a big confidence boost down under. It doesn’t look like any further rates cuts are on the cards for the time being and that seems to be lending some support to the Aussie.

GBP AUD

As the markets continue to digest the considerable political uncertainty there is likely to be major volatility for sterling Australian dollar exchange rates in these coming weeks. Assuming the conservative government can form a minority government with the support of the Democratic Unionist Party (DUP) then the pound should rally. However the Queens speech which is due to take place Monday 19th June could see problems ahead. Labour party leader Jeremy Corbyn has made clear he will try and vote down the Queens speech and if successful could see him try to form a government.

Clients selling Australian dollars would be wise to get in touch as the situation could change rapidly and this is a very new position the UK finds itself in.

Aside from the immediate issues, political uncertainty going forward could feed into weaker economic growth which is likely to put additional pressure on the pound. The housing market which has recently seen signs of a slowdown could now see further stresses with the additional political dimension. It also means it is highly likely the Bank of England will not seek to raise interest rates any time soon amidst the current political situation. The first hike could now be some time mid-2019 and this reason alone could result in a sustained period of sterling weakness.

If you would like further information on Australian dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

GBP AUD Exchange Rates Near to 8 Month High (James Lovick)

The Australian dollar has bene impacted by new developments of late and much of it revolves around the Reserve Bank of Australia’s (RBA) thinking. Reserve Bank of Australia Governor Philip Lowe will be speaking this evening and he is likely to reflect on the state of the economy to include the Australian housing market and future interest rate policy.

There have been recent concerns as to the health of the property market down under and suggestions are being made that mortgages offered without deposits could be the trigger for something more sinister and may have some similarities to the Sub Prime crisis in the US which triggered the financial crisis of 2008. The RBA are therefore highly unlikely to want to raise interest rates and cause a potential collapse in confidence. If anything it looks to me like an interest rate cut could be just around the corner and this could result in further dollar weakness.

Developments in the US are also helping keep pressure on the Aussie considering trade agreements are all at stake. The US only recently slapped on tariffs on Canadian lumber and there is a strong chance that other tariffs may be imposed elsewhere. The Australian dollar which is perceived as a riskier currency does not perform well under these conditions.

Those clients with a GBP AUD requirement should pay close attention to the UK general election. The pound has started to soften over the last week after the very high inflation numbers from last week showed British pockets are being squeezed by a lack of real wage growth. The week data and uncertainty of a general election are likely to keep the pressure on the pound in the run up to 8th June. Clients selling Australian dollars may see a good win opportunity in the next couple of weeks. Assuming the election result is a conservative majority as widely expected then the pound could see a good rally on the 9th June after the winning party is announced. Sellers may wish to secure before this important date in the calendar

If you would like further information on Australian dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Australian Dollar Forecast

Best rate to buy Australian Dollars with Pounds this year (Tom Holian)

The Pound has hit its best rate to buy Australian Dollars since autumn 2016 as the US has growth rate has hit a 3 year low.

Generally speaking whatever happens in the US economy will impact upon global foreign exchange rates and typically when the US shows signs of economic slowdown this negatively affects commodity based currencies including the Australian Dollar.

This is one of the reasons why the Australian Dollar has started to fall in value in recent weeks. In his election campaign Trump proposed that he would raise growth to 4% which is very different to the data which showed annual growth in the first quarter of just 0.7%.

Combined with the announcement that the UK will be holding a snap general election in June this has also given  the Pound some much needed support against all major currencies over the last fortnight. Political stability has returned to the UK at least in the short term which has given the Pound some assistance.

On Tuesday the Reserve Bank of Australia will announce their latest interest decision and as the property market is still very strong down under then they are in a difficult position as if they do cut interest rates then this will see property prices go up even higher as borrowing costs will fall. Therefore, I would be surprised to see any change in monetary policy when they meet on Tuesday.

With the Pound now having comfortably broken past 1.70 on the Interbank level I think we could see further gains for the Pound vs the Australian Dollar over the next week.

If you have a currency transfer to make in the days, weeks or even months ahead then feel free to contact me directly. Working for one of the UK’s leading currency brokers I am confident of being able to offer you better exchange rates when buying or selling Australian Dollars compared to using your own bank. A quick email could save you a lot of money and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

GBP AUD Makes Solid Gains after Bank of England Meeting (James Lovick)

The pound has rocketed against the Australian dollar this afternoon after the latest Bank of England meeting this afternoon. GBP AUD has now broken through 1.61 having fallen to a low of 1.59 earlier today. The Bank of England held rates steady today as widely expected but there was a new development. One member of the Monetary Policy Committee voted to raise interest rates creating an 8-1 split at the central Bank and this resulted in an instant market reaction with the pound rallying.

The mood at the moment in the UK is starting to look more upbeat with Brexit in my opinion. There is a course the government is steering towards and some of the recent comments from the Eurozone have been quite constructive in terms of the negotiation. For those clients selling Australian dollars for pounds this is important as there are currently some excellent trading levels available although we could well be at a turning point now. For assistance on the timing of a currency exchange this is something we can help you with.

Although the US Federal Reserve raised interest rates in the US last night to 1% which resulted in some Aussie dollar strength, it proved very short lived after the Bank of England news today. Data in Australia has proved very resilient with a buoyant housing market and recovery in commodity prices. The Australian economy is performing well at present and it seems unlikely the Reserve Bank of Australia will want to dampen the recovery with an interest rate hike when the general mood is more towards making a cut. As such the Aussie dollar is unlikely to benefit from any monetary policy intervention.

If you would like further information on Australian dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Selling Australian Dollars – GBP AUD Falls to1.60 (James Lovick)

The pound is falling lower against the Australian dollar as the Brexit bill to invoke Article 50 has been held up in the House of Lords where an amendment has been requested to protect the rights of the 3.2 million EU citizens currently living in the UK.

Why is this important for the pound? The change was voted on last night with an overwhelming majority to support the amendment which ultimately could mean that UK Prime Minister Theresa May’s Brexit timetable to invoke Article 50 in March could be delayed.

The markets don’t like uncertainty and any hold up could make things more difficult for the pound as the clarity as to the terms of Brexit that most are looking for could be delayed. It has already been an uncertain 9 months for the UK since the Brexit vote and no answers to the important questions will be offered for the EU until Article 50 has been invoked.

The general consensus is that the House of Lords are making their concerns known but it is widely expected that when it comes to the crunch it will be the Lords who will back down. This period of ping pong between the House of Commons and the House of Lords is likely to continue over these next two weeks which does carry an uncertain period for the pound. There could be some of the best prices available for selling Australian dollars in the next couple of weeks.
Data is light today in the UK with just UK construction data from the Purchasing Managers Index which could create some market movement. It is more likely to be developments in the British political arena which are more likely to be the driving force for the pound.

Buying Australian dollars?

For those clients that are feeling the pinch from the weakness of the pound against the Aussie there could be some better opportunities on the horizon. There is a growing chance that Australia may have to cut interest rates largely as a result of less demand from China. This won’t happen overnight but any noises of interest rate cuts are likely to push the dollar weaker.

If you would like further information on sterling or Australian dollar exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

Further losses for Sterling vs the Australian Dollar expected (Tom Holian)

The Pound has made some limited gains vs the Australian Dollar recently but ultimately is struggling to break much higher.

There are a number of different reasons as to why the Australian Dollar is performing so well against the Pound at the moment and I think we’ll see GBPAUD rates fall below 1.60 in the near future.

The Reserve Bank of Australia has made it clear that there will be no interest rate change for the time being and as interest rates are so high compared to any other leading economy we are continuing to see money invested in Australia.

Commodities have also been improving other the last year with the value of iron ore rising by over 50% in that same time. With iron ore such a huge part of the economy this has also kept the AUD strong against Sterling.

The Pound is also struggling against most major currencies and with next month due to see the triggering of Article 50 we could be in for further uncertainty ahead and a loss of confidence for Sterling.

Indeed, it is not yet clear whether the UK will opt for a hard or a soft Brexit and the lack of clarity is causing problems for the Pound.

The UK economy has actually been performing relatively well but recently we have seen two sets of data that should cause real concern. UK Average Earnings have started to fall and with inflation on the rise this means the UK consumer will ultimately have less money to spend and this was clearly demonstrated with the release of UK retail sales for January which saw the lowest level in three years.

On Wednesday we see the release of Chinese manufacturing data and Australia’s commodity index for February and if both come out well I think we’ll see the Pound fall against the Australian Dollar.

If you have a currency requirement coming up and would like more information or for a free quote when buying or selling Australian Dollars then do not hesitate to contact me directly and I look forward to hearing from you.

Having worked for one of the UK’s leading currency brokers since 2003 I am confident of offering you competitive rates as well as help with the timing of your transfer.

Tom Holian teh@currencies.co.uk

 

Could Sterling hit 1.70 against the Australian Dollar this month? (Tom Holian)

Sterling has continued its recent fight back vs the Australian Dollar and has gone from strength to strength during the last fortnight against a number of major currencies.

The positive movement for Sterling began when Prime Minister Theresa May spoke out about the issue of Brexit and stated that she would seek parliamentary approval in order to go forward.

The Supreme Court on Tuesday finally gave its verdict but with Theresa May having already spoken out the impact of the news was not as important as it could have been.

Turning the focus to what is happening globally we have seen Donald Trump inaugurated last Friday and he is now in the White House for his first full week.

This has caused global markets to remain anxious and this has caused investors to sell off more riskier currencies which includes the Australian Dollar. This has seen GBPAUD rates improve by over 3% during the last fortnight.

Indeed, yesterday the inflation level in Australia fell which is likely to put more pressure on the Reserve Bank of Australia as falling inflation creates an argument to cut interest rates and if this does become a discussion topic then this is also likely to see problems ahead for the Australian Dollar.

To me the Pound vs the Australian Dollar is heavily under valued and if you remove the Brexit issue we would see GBPAUD rates much higher than where we currently stand. However, in the UK things are still politically uncertain so although I think we’ll see Sterling improve against the Australian Dollar in the short term it is difficult to see what may happen longer term.

Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident that not only can I offer you better exchange rates than using your own bank but also help you with the timing of your transfer.

If you have a currency transfer to make and would like to save money on exchange rates when buying or selling Australian Dollars then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk