Tag Archives: Selling Australian Dollars

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! **

GBP AUD Rates Slide on UK Brexit Uncertainty (James Lovick)

GBP AUD exchange rates have inched lower this week as ongoing British politics continue to weigh heavy on the pound. Clients looking to buy or sell Australian dollars would be wise to look at their options very quickly as developments over the next two weeks are likely to have a very big impact on the value of sterling rates.

UK Prime Minster Theresa May and the British government are feeling the pressure this week as it has been reported that forty conservative members are prepared to sign a letter of no confidence in the Prime Minister. It would only take another 8 signatures that would force a leadership challenge and this perceived risk of a potential change of leadership is piling on the uncertainty for the pound.

The recent ultimatum from the EU giving Britain just two weeks to cough up more money in the Brexit negotiations or face a no deal situation is yet another major concern for those clients holding pounds looking to buy Australian dollars.

Any deterioration in these negotiations will likely see the pound weaken further and sterling will very much depend on progress in the next couple of weeks. If for example there is no agreement on the divorce settlement and talks break down with no deal at all then in the short term the pound could come under sizeable pressure. This is a real risk and there is every chance that this least preferred option could become a reality for all sides involved.

Consumer confidence numbers from Westpac are released later which should give some clues as to the strength of the Australian consumer. Wage price data is released on Wednesday which could help see the dollar rally if the numbers arrive better than expected. The lack of action from the Reserve Bank of Australia though is only likely to prevent the dollar from strengthening too much. The decision to maintain rates at such low levels is keeping the dollar on the back foot.

Anyone selling Australian dollars could see some excellent opportunities in the next 10 days if Brexit starts to look messy which could provide a short window of opportunity. Please feel free to contact myself James at jll@currencies.co.uk and I will be happy to take a look at your requirement and see how your transfer may be impacted by these economic and political changes.

UK economy growth is picking up, will GBP/AUD reach 1.75 again in the near-term future?

The Pound has picked up once again this afternoon after some better than expected economic data, this time in the form of GDP figures has boosted the markets.

This means that UK economic output in the months of July-September grew by 0.4% whereas it’s grown by 0.5% from August-October. This is of course positive news for the Pound and the Pound is now trading around the 1.7250 mark at the time of writing.

The highest the GBP/AUD rate has traded in the last year is 1.7650 so the rate is now within 4 cents of the best levels so it appears that the rate hike last week from the Bank of England has boosted sentiment surrounding the UK economy.

The think-tank that produced today’s GDP figures also believes that the Bank of England will have raised interest rates to 2% by 2021 which is a bit more bullish than the comments outlined by the BoE last week when rates were hiked, and I think that the Pound would climb quite considerably from its current levels should such a bullish monetary policy be adopted by the BoE.

The next busy day for economic data is Tuesday next week, so feel free to get in touch in the meantime if you would like to plan around this event, should you have any upcoming currency requirements.

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 Finds Support on Stronger Commodity Prices (James Lovick)

The Australian dollar could see a renewed boost in its fortunes with the rising price of commodity prices to include oil and iron ore. Climbing commodity prices are normally a good signal that the global economy is functioning well which bodes well for currencies like the Aussie dollar. Australia of course has a large export market for raw materials and is the reason it is referred to as a commodity currency. As such when the price of iron moves higher as it has done in the last three months then this is welcome news for the Australian dollar. Any further increases in commodity currencies in these coming months should only help support the dollar further.

The Australian dollar had come into a little bit of trouble of late with some sizeable losses seen after the Reserve Bank of Australia made clear that it is not even considering any interest rate increases at this time. Rates for GBP AUD moved into much more attractive territory for those clients looking to buy Australian dollars although those gains are now being brought back down after the recent rally in commodity prices.

The pound appears to have found support above 1.70 for the moment and any changes to commodity prices are likely to see the dollar react.
For those clients buying or selling Australian dollars for sterling would be wise to pay close attention to the next round of Brexit discussion which will resume tomorrow in Brussels.

The perceived stalemate is likely to keep pressure on the price of sterling and movement round this impasse is not expected until December of even January. As such clients looking to buy Australian dollars in the short term are unlikely to see rate much higher than the levels currently available. Once again the Brexit negotiation will continue to be the single biggest driver for sterling exchange rates in these unpredictable markets.

Should you have a currency requirement and need to either buy or sell Australian dollars for pounds or Euros for example then please do get in touch with me and I will be happy to look at your requirement and see how we may be able to assist. We are able to achieve excellent commercial rates of exchange from the live markets but we can also help you with the timing of the conversion and look to help you find a good day to do the trade. You can email me directly at jll@currencies.co.uk

Will the Pound fight back vs the Australian Dollar during November? (Tom Holian)

Thursday saw one of the most eagerly anticipated days of the year so far with the latest Bank of England interest rate decision but for anyone hoping to see GBPAUD exchange rates move in an upwards direction was sorely disappointed.

Although the Bank of England as predicted did raise interest rates for the first time in over ten years the accompanying statement caused the market to plummet to below 1.70.

The interest rate hike was arguably the most dovish in history with the central bank suggesting that we may only see two more rate hikes by the end of 2020, which is hardly good news for anyone looking to invest in Sterling for a positive yield.

However, today we saw GBPAUD exchange rates stabilise above 1.70 after such heavy losses which shows there is still Australian Dollar weakness at the moment against the Pound.

I personally think although we may see Sterling remain under some pressure against the Australian Dollar I expect to see the Pound make gains vs the Australian Dollar in the weeks ahead.

Therefore, if you’re looking at buying or selling Australian Dollars but want peace of mind in the next few weeks it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

If you have a 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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as I can.

Pound falls against the Australian Dollar after lower than expected UK Retail Sales data (Tom Holian)

The Pound vs the Australian Dollar has had a difficult week so far after some poor UK economic data during the last few days.

This was particularly evident after the UK announced a big fall in Retail Sales data which fell by 0.8% during September. This is now the lowest quarter seen since mid 2013 highlighting the slowdown in the UK.

The Brexit talks continue to dominate headlines and this data release could be evidence of the uncertainty from the consumer. Indeed, UK talks with the European Union are stalling with no breakthrough after having had a fifth round of talks over the last few days.

Prime Minister Theresa May has been trying to remain positive about the talks but at the moment we are no closer to finding a resolution.

In addition to this the Chinese economy has announced some positive signs during the early part of this week which is another factor in the reason for the recent strength of the Australian Dollar vs the Pound.

Looking ahead to next week Australian Inflation data is due to be released on Wednesday and as inflation has been rising globally in recent times we could see some volatility for the Pound vs the Australian Dollar towards the middle of next week.

Not only is the Australian inflation data very important but so is the release of the first estimate of UK GDP data due to come out on Thursday. As this is the first estimate this can often be very hard to judge and will provide the market with some evidence as to whether the Bank of England may look to be raising interest rates when they meet on 2nd November.

If you’re in the process of buying or selling Australian Dollars the the events will be Australian Inflation, UK GDP and the ongoing Brexit talks.

If you have a 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 (Tom Holian) on teh@currencies.co.uk and I will endeavour to get back to you as I can.

Bad news for the Pound pushes it lower, are trade levels in the early 1.60’s on the horizon again? (Joseph Wright)

Despite some negative data being released down under in the early hours this morning, the Pound has still dropped against AUD throughout the day’s trading.

The worst Retail Sales figures in 4 and a half years were published this morning, as it turns out that Australian consumers are beginning to cut back on items such as food, clothing and furniture.

The reading for July was also revised down from the previous reading, meaning that the two drops in sales figures are the biggest back to back drop since 2010.

Despite this this disappointing data release the Pound has still fallen against the Aussie Dollar, whereas the majority of other major currency pairs have risen against the Aussie.

Sentiment surrounding the Pound took a knock today as ratings agency, Standard & Poors questioned whether the UK could withstand an interest rate rise, and it emerged that car sales in the UK are continuing to drop.

There has also been a lot of talk regarding UK Prime Minister, Theresa May’s calamitous speech to the Conservative party conference on Wednesday.

Odd’s are increasing on her resignation and although I don’t expect any changes at number 10, I think any talk surrounding this matter could result in a weaker Pound which could push the GBP/AUD pair down towards the 1.60 mark.

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.

Is the Aussie Dollars bullish run coming to an end? (Joseph Wright)

The Pound is continuing its recovery against the Aussie Dollar, with the rate rising above the 1.70 mark once again and this time almost hitting 1.72 at its highest point during today’s trading session.

I believe this change in direction for the pair can be put down to both Sterling strength as the pound is also putting in some strong performance against other major currency pairs. This is likely due to Brexit headlines and uncertainties not being in the spotlight which has been a welcome change for those hoping to exchange their Pounds at more competitive levels.

The upward movement for GBP/AUD has also been aided by the weakening Aussie Dollar which had previously been one of the strongest performers of the year.

The drop in the Aussie dollars value can be put down to a slowdown in Chinese growth, falling commodity prices such a iron ore which is key for AUD, and also talk of the Reserve Bank of Australia not planning on hiking interest rates until 2019 which is in start contrast to the Bank of England who have alluded to hike as soon as next month.

Tomorrow morning there will be a key data release out of the UK as UK GDP will be released around 9.30am. If this figure deviates from the expectation we could see further movement, so feel free to get in touch with me if you wish to be kept updated regarding this release.

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.

Pound to Aussie Dollar rate hits an 8-week high after Bank of England hints at a rate hike, will this upward trend continue? (Joseph Wright)

The Pound rose sharply today against all major currency pairs after comments from the governor of the Bank of England buoyed the markets.

Up until lunchtime today it had appeared that the Bank of England hadn’t planned on hiking interest rates in the UK until 2019, but that changed this afternoon after a number of comments from Mark Carney (the governor of the Bank of England) hit the financial headlines.

After a higher than expected inflation figure earlier this week, the Pound had climbed slightly on hopes that the BoE would act sooner, and today those hopes materialised which is why we’re seeing the Pound climb so steeply.

Generally speaking, an interest rate hike is considered a positive for the underlying currency in question, hence the sharp rise as the markets mere mostly shocked.

Carney stated that the possibility of a rate hike has increased, and that rates may need to be adjusted in the coming months. He also stated that that he was among the majority of the Monetary Policy Committee members that believe some withdrawal of monetary stimulus will be needed in the coming months.

With comments such as these I expect to see the Pound continue to climb from its current levels, especially if they continue and the rate hikes are carried out.

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 Brexit uncertainty continue to push GBP/AUD lower, and will we see trade levels below 1.60 again this year? (Joseph Wright)

Economists appear to be concerned by the almost daily dropping of the Pound, as uncertainty surrounding the terms of the Brexit deal are putting alot of pressure on the Pounds value.

Many are predicting that the pound will be trading lower into 2018 than current levels, and although this blog is focused predominantly on the GBP/AUD exchange rate I think it’s useful for our readers to know that many major institutions are predicting that the Pound will fall below parity against the Euro for the first time in 2018.

Interestingly earlier this week the National Australian Bank predicted that the Australian Dollar will actually lose value against the Pound between now and the end of the year, although only marginally.

This prediction appears to buck the trend of general negative outlooks surrounding the pound as concerns over the UK economy as we enter Brexit are generally outweighing other factors.

This weekend there could be movement for the Pound to Aussie Dollar exchange rate as a number of key financial figures such as US Fed Chairlady Janet Yellen and European Central Bank president Mario Draghi will be speaking Jackson Hole central banking conference. This will be happening out of hours so expect any major announcements to impact the rates perhaps late tonight or when markets open next week.

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.