Tag Archives: sterling
Sterling slowly gaining against the Australian Dollar
The Pound has had a great run against the Australian Dollar of late, gaining almost 5 cents in the past few weeks.
At present, with buying levels now over 1.50 it does become quite a temptation to buy Australian Dollars if you have been waiting to make a purchase since the start of the year.
From what I hear from friends over in Australia things are not as great as have been made out and with China seemingly slowing down ever so slightly there may be a little more room for improvement in GBP/AUD rates as long as the U.K can avoid moving backwards again with their economic recovery.
Be very wary though if you do have a pending property transaction to carry out and the current level is within budget it may be tempting toat least book half of your currency just in case the AUD does have another charge of strength which we can never rule out.
Today is key for the Pound with production figures out at 09:30am and the Bank of England interest rate decision due at 12:00pm. Should the Bank of England not have changed their plans surrounding Quantitative Easing then the Pound could creep up a little further.
If you are in the position where you need to buy or sell Australian Dollars for any major currency then I can help you both in terms of a great rate of exchange and a fantastic level of service. You can contact me on djw@currencies.co.uk please let me know a brief description of your requirements and a contact number and I shall be more than happy to help you.
Should the RBA cut interest rates next week I would expect GBP/AUD to move towards 1.52 but EUR/AUD could move back to 1.25
Sterling has once again breached the 1.50 level against the Australian Dollar creating some good opportunities for those looking to buy AUD. We have also seen the Euro rally past 1.27 back from the mid 1.25s earlier this week. For me we are likely to see further opportunities for GBP/AUD, particularly should the Reserve Bank of Australia look to cut interest rates on Tuesday next week. As for EUR/AUD the recent gains could be a stronger opportunity. The European Central Bank will meet tomorrow to discuss their latest interest rate decision with many expect the ECB to cut rates from 0.75% to 0.5%. This will have been priced into the market but I would still expect moves against the Euro to be negative as we finish off the trading week.
Longer term I believe buyers of the Australian Dollar will get stronger opportunities and would expect a shift towards 1.52 for GBP/AUD and would certainly adopt a wait and see approach. I feel the slowing economy in China and the recent strength of the dollar will cause concern for the RBA and I would not be surprised to see a couple of interest rate cuts throughout the year, with opportunities towards 1.55 later this year.
Should you have an upcoming trade to arrange and you would like to discuss the market in more detail and how we can help you achieve a competitive commercial rate of exchange then please get in touch. We are here to help. Please email with your particular currency requirement and I will happily get in contact to discuss your options to help you maximise your trade. Email mgv@currencies.co.uk
Sterling hits 1.50 against Australian Dollars (Tom Holian)
So the question is when should I buy Australian Dollars? With the UK announcing it has grown in the first quarter by 0.3% much greater than expected we have seen Sterling rally across the board hitting recent highs against the Australian Dollar at 1.50+. However, during the last two trading sessions the GBPAUD exchange rate is seeing resistance levels at a fraction above 1.50 so we will need to see another data release in order for the currency pair to push past this level.
With Sterling improving by 2% this week against the Aussie it could be argued that there has been too much positive movement for the Pound so this opportunity could be quite short term. There was been initial fears that the UK would enter its third recession since 2008 so the markets have taken the news positive for Sterling.
There has been strong growth in the services sector and an improvement in oil production in the North Sea which has also led to a recovery for the UK economy as whole. According to Chancellor Osborne the deficit is down by a third, interest rates are at a 365 year low and companies have created over 1.25mn new jobs so as far as he is concerned the UK is on the right road to recovery. Personally I think it could be a false dawn so the improvement in exchange rates yesterday may be short lived.
The UK economy is still 2.6% smaller than in 2008 prior to the beginning of the infamous credit crunch so there is a long way to go still. If you would like more information about what is happening to Australian Dollar exchange rates feel free to contact me directly on email Tom Holian teh@currencies.co.uk
Australian Dollar and UK GDP Figures (Tom Holian)
In just over an hour’s time the UK will publish its first quarter GDP figures. The expectation is for a growth of 0.1% meaning the UK would avoid a triple dip recession and if the figures stay positive we could see a sharp rally for Sterling shortly after the announcement. However, the figures are still concerning for the UK economy as a whole. This is probably the most important data release of the year so far.
Since the beginning of the credit crunch in 2008 we have seen the Aussie Dollar strengthen by over 30% when the Aussie was trading well above the levels of 2 to the Pound. The Australian economy has continued to go from strength to strength and has gone hand in hand with Chinese growth so as long as the Chinese economy grows this could keep the AUD very strong.
If you have a requirement to buy Australian Dollars and you are worried about what may happen later today with GDP figures and want to receive a free quotation please get in contact via email Tom Holian teh@currencies.co.uk
Let me know your thoughts about what you think will happen with GDP figures this morning or feel free to see what our poll of analysts think by visiting www.poundsterlingforecast.com
Sterling improves against Australian Dollar following Chinese Slowdown (Tom Holian)
A survey produced by HSBC this morning has indicated that growth in China’s manufacturing sector has slowed down in April. The initial reading for Chinese PMI fell from March’s data of 51.6 to 50.5. Anything above 50 represents expansion so yes they are still growing but clearly there is a slowdown. During 2012 Chinese GDP grew at the slowest pace in 13 years. Growth in the country has also dropped to 7.7% in quarter 1 compared to 7.9% during the final quarter of 2012.
Generally speaking the Australian Dollar is heavily influenced by what is happening in China. With the recent poor performance by the world’s second largest economy we have seen GBPAUD exchange rates break through 1.49 this week, the first time since February. With UK GDP data due to be published on Thursday if we see negative growth this could push the UK into recession which arguably could push Sterling down but my feeling is that this is already priced in so unlikely to have the expected movement on the Pound. Indeed, I think we could see a further strengthening for the Pound if the data is better than expected.
UK Borrowing was £120.6bn in the last 12 months slightly lower than the the previous year of £120.9bn with the UK government planning to reduce this as much as possible with a view to eliminating the budget deficit by 2018. However, Public Sector Net Borrowing now stands at approx £1.2trn which is over 75% of GDP according to the Office for National Statistics.
If you need to buy or sell Australian Dollars and want to make sure you are getting commercial exchange rates we aim to better the rates offered by your bank. For a free quote send me an email with a brief description of your enquiry with ‘FREE QUOTE’ in the subject of the email. Tom Holian teh@currencies.co.uk
GBP/AUD shifting towards 1.50……
Sterling exchange rates have shifted over a cent from the high/low today and again have shifted on the side of sterling, pushing prices close to 1.49. Will this shift push past 1.50? For me this will depend on whether the UK can avoid the ‘triple dip’ recession, something we will officially find out on Thursday. I for one am confident a 0% or 0.1% figure will be seen and we should hopefully see some sterling strength as a result. This could provide many, particularly those that that have been waiting for 1.50, with an opportunity as I for one feel we will see 1.50 as a trade price by the end of this week.
In order for you to take advantage of any positive market movement it is important to speak to a foreign exchange epxert who can make you aware of market trends and instigate an exchange should a specific market order be in place. If you are one of the many clients that would be interested in trading at 1.50 and you would like me to set a rate alert or LIMIT contract to make sure you do not miss an opportunity then please contact the office on 01494 725353 and I will gladly run through the process. As one of the market leaders in exectution only foreign exchange I am very confident I can undercut any other provider, get in contact to see what rates we can offer and to see what saving we can make you.
Should you prefer to email then please send a brief description of your transfer and timings to mgv@currencies.co.uk
Sterling – Australian Dollar on the up? Even the IMF downgrade does not seem to be denting a potential shift back up (Daniel Wright)
Sterling – Australian Dollar rates have started to creep back up in the right direction so far this week which is much better news for those looking to buy Australian Dollars.
Yesterday the IMF actually downgraded growth forecasts for the U.K which dented the Pound against the majority of major currencies yet Sterling held its ground against the AUD which is a promising sign if you have been holding out to send over the money from your U.K house sale over to Australia following your emigration.
Chinese GDP figures slowing and the potential of an imminent interest rate cut for Australia are starting to weigh down the AUD ever so slightly and personally I feel we could finally break back above 1.50 in the coming days…. As long as the Bank of England do not throw a spanner in the works with their latest interest rate decision meeting minutes released a little later this morning.
If you have a pending currency transfer to carry out and you want the very best exchange rates to either buy or sell Australian Dollars then contact me directly and I will be happy to help you compare with your bank or current provider.
You can contact me directly djw@currencies.co.uk please quote ADF in the subject title and leave me a number to call you on, I look forward to speaking with you.
