Tag Archives: Selling Australian Dollars

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! **

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.