Tag Archives: sterling

Sterling Australian Dollar hits 1.80 (Tom Holian)

Since early February when the RBA announced an end to their current interest rate cutting cycle we have seen Sterling vs Australian Dollar exchange rates drop by as much as 7% during this period. Also, during this time the RBA governor Glenn Stevens has suggested that the mining sector will be replaced by the construction sector as the next boom for the Australian economy likely to last for 2 years.

Australian unemployment data during April showed that the figures fell from 6% to 5.8%, the best employment levels for any western economy and showing signs of growth for the Australian economy and a reason to invest in the country. This is also another reason why the Australian Dollar has strengthened against Sterling.

However, during last week with inflation in the UK falling below wage inflation for the first time since 2009 the Pound has seen a rise across the board against all major currencies including the Australian Dollar which has seen exchange rates break through 1.80 for the first time in weeks.

Chinese Premier Mr Li said growth at about 7.5 per cent would be with a reasonable range. On Wednesday, China reported that its economy had expanded by 7.4 per cent year-on-year, above consensus forecasts of 7.3 per cent. With growth forecasts having fallen recently in China this is another reason why the Australian Dollar lost ground against the Pound last week.

If you have a currency transfer to make and want to save money on exchange rates compared to using a bank then contact me directly Tom Holian teh@currencies.co.uk

 

 

 

6 month high to sell the AUD for the GBP

Are you going to need to transfer AUD back in to GBP in the future? Current AUD for GBP rates are at a 6 month high. It is the best time in 6 months to sell AUD for GBP so if you would like to look at anything here please let me know.

Should I buy now or hold on is a questions I am continuously asked! The bottom line is that no one can tell you exactly what to do because no one can say with any certainty exactly what will happen in the future. It is often those who become complacent with rates who stand to lose the most as they wrongly assume a certain outcome.

This is the case for many Aussie buyers in the last few months. they have been banking on trading at a level in a range of 1.80 to 1.90+ and now find themselves in a rather difficult position. Do they buy now at these slightly lower levels or do they hold on?

The current forecast still favours sterling I believe due to the improvements in the UK economic outlook. There is scope for some strengthening of the AUD however, tonight’s Chinese data will be key.

For more information on the current forecast please contact me Jonathan on jmw@currencies.co.uk

 

RBA Minutes Suggest A Slow Down On The Aussie

The RBA Minutes published overnight suggest the Aussie is unlikely to appreciate much further in my view.  The RBA warned that the recent strength in the Aussie Dollar over the last few months would be a drag on their efforts to rebalance the economy.  Whilst I don’t feel this will result in any kind of interest rate change given the recent cuts (I think we will see a period of stability in that regard), it does suggest the RBA are taking a close interest in the strength of the Aussie Dollar.  To this end I would not be surprised to see some other form of intervention should the AUD begin to appreciate particularly against the USD.

We still have UK inflation figures to be published this morning at 9.30 and the US equivalent at 1.30 so both of these could see some movement.  Sterling will also be backed up by a reasonable showing in the jobs figures due out tomorrow morning in my view.  On the Euro we have economic sentiment figures due out this morning, and wider European inflation figures out on Wednesday morning.  German figures released late last week came in on target, but if the European figures as a whole don’t match this we could see Euro weakness.  Inflation is becoming a worry for the ECB so the longer it remains low, the more likely we are to see some form of intervention by them.  Who knows we may even get to see what these unprecedented measures are that Mario Draghi keeps hinting at!

If you need to transfer money to Australia, or want to exchange Australian Dollars for another currency then please feel free to get in touch and see if we can help.  Simply email Colm at cmg@currencies.co.uk with an overview of your currency requirements and I would be happy to explain what we can offer and how we can help you get the best exchange rate.

Market volatility continues. Getting the best deal on your foreign exchange (Mike Vaughan)

Sterling has fallen to a new fresh 6 month low against the Australian Dollar trading into the 1.77′s and making the pounds losses in the last 30 days to 4.2% a difference of $14,800 AUD on a £200k money transfer. With the Reserve Bank of Australia releasing their minutes overnight this volatility could well continue.

As you can see by timing your exchange significant savings can be made. The purpose of this website is to provide relevant information to help private and corporate clients with upcoming money transfers to arrange. As one of the authors on the site, my colleagues and I have personally helped thousands of clients with their foreign exchange and would be happy to see what we can do for you. I work for one of the UK’s largest independent currency brokers and am confident I can undercut any price you have been offered by your bank or current provider.

Why not test the service?

Send me an email with a brief overview of your current requirements and what you have been offered. I will then email you within a matter of minutes with a live quote. If there is a saving to be made it takes two minutes to register a live trading account and your currency can be secured. Our trading lines open at 08:30 BST Monday – Friday closing at 18:00 Email Mike at mgv@currencies.co.uk to get the ball rolling!!

AUD at its highest level against the pound and US dollar in 6 months (Mike Vaughan)

This morning the Australian Dollar has hit its highest level against the pound and US dollar since November 2013. Levels have shifted overnight following an increased level in housing data and consumer confidence. A significant shift was also seen earlier in the week following the trade agreement made between Japan and Australia. In the agreement Japan has agreed to lower duties on Australian beef and raise the duty-free quota on cheese – Australia’s biggest dairy export to Japan. Australia will cut tariffs on Japanese electronics, cars and white goods. The deal, agreed after seven years of negotiations, is expected to be finalised later this year when Japan’s prime minister visits Australia.

With the recent shift in sentiment from the RBA and Glenn Stevens indicating he is more comfortable with the position of the Australian Dollar and the forecast of a housing and construction boom things are looking a lot brighter for the Aussie. Anyone buying the AUD may wish to re-evaluate their position, remember you are still over 20% up since June 2013 but the tide seems to have turned and the Aussie is certainly fighting back.

To discuss the currency service we provide and the contracts we can offer then please contact the office on 01494 787478. Alternatively email me with a brief overview of your requirement and time-scales and I will happily look at the current trends and forecasts to try and help you maximise your position. Email Mike at mgv@currencies.co.uk

 

 

 

AUD remains strong and unemployment figures this week could cause a further gain for the AUD (Ben Amrany)

The Australian Dollar has been performing very well of late against a host of the majors. There has been a big increase in the value of the AUD and has significantly strengthened against the pound of late. The days of 1.90 seems a long time ago now. The news that China’s growth forecasts for 2014 have been cut did not do enough to stop the halt of the Aussie with GBP/AUD falling to as low as 1.7829.

This morning however the UK posted some positive industrial output figures showing a rise much bigger than originally anticipated. The manufacturing production figures also came out extremely strong and since has assisted GBP/AUD to rise back to 1.7926.

The biggest mover for the Aussie Dollar this week will be in the form of their unemployment figures for March. Recently a survey which showed job adverts have increased for a third straight month and if the unemployment rate benefits from this it could cause another spike in the Aussie Dollars favour. Good if selling AUD bad if buying AUD.

This rise this morning goes to show how quickly the change in the rates can occur. If you are looking at buying the AUD then why not challenge us to beat your banks rate either here in the UK or in Australia. I help assist thousands of clients repatriate funds between the two countries and time and time again make our clients significant savings over the banks. If you feel that you need to make a currency exchange then please do feel free to contact myself Ben Amrany at bma@currencies.co.uk and I can explain the options that are available to you in trying to achieve the best exchange rate available.

If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at bma@currencies.co.uk 

 

 

rates still at 1.80 against the AUD

The Australian Dollar weakened at one stage this morning after retail sales down under came out worse than expected with a reading of 0.2% where markets were expecting growth within the sector of 0.3% Rates at one stage hit GBP/AUD 1.8070 before falling again down to a low of 1.7944. With the rate very rangebound at the moment significant movements will be dependant on comments from one of the central bank members, economic data or events over in China.

With very little chance of interest rate movements in the UK or in Australia things are very flat. I feel we will see these levels remain until the consumer confidence levels come out next Tuesday for Australia and teh trade balance figures for the UK the day after.

With things so flat I would recommend moving on spikes in the market as I feel this lull in the rates will continue. If you are still holding out for 1.90 and need to trade within the next week or so I would look at things before a further potential drop in the rates occur.

If you are in the situation needing to move money internationally and looking for the best price – please feel free to contact the author – Ben Amrany – via the telephone number at the top of the page or via email at bma@currencies.co.uk

Will we see the Aussie go back to 1.90?

This is a question I am being regularly asked by anyone buying Australian dollars with sterling. My response is often ‘Why didn’t you buy when it was 1.90?’ and their response ‘Because I wanted it go higher’ highlights the psychological problems of buying currency! Namely we always want a little more. There is an inherent risk of course that being greedy leads you to end up with nothing… or less than what you had of achieved if you had been a bit more sensible.

Getting the absolute top or bottom of the market is impossible!

This should be obvious but still many people hold out on their currency purchase expecting rates to magically back to the highest it has been. This is why it is very important to understand what is actually going on in the market and what is driving your rate. If you need to make a currency transaction in the future buying or selling AUD why not get in touch with me Jonathan on jmw@currencies.co.uk. Holding out in blind hope that your rate will be reached is the most dangerous thing on exchange rates, speak to me to find out what is realistic or not!

The outlook on the Australian currency has become slightly more positive recently with the RBA (Reserve Bank Australia) saying they will not be cutting rates again in the future. This means that you shouldn’t bank on big improvements for buying Australian dollars, the market is much more neutral and subject to any unexpected news we will probably remain range bound for the moment.

Friday’s US Jobs data is potentially the biggest news, if you have a currency requirement soon involving the Australian dollar making some careful preparations ahead of the news is probably the best thing to do.

We always beat rates of other companies and the banks so to learn more about properly managing your exposure to the currency markets, please get in touch.

Jonathan Watson

jmw@currencies.co.uk

Aussie Still Gaining Traction

The Aussie Dollar has once again gained ground against the Euro, Dollar and even sterling following Glenn Stevens comments the other evening.  Whilst I expected the Aussie to move up versus the Euro I have been surprised it managed to break significantly below the 1.80 barrier with the pound, although it has retraced some gains against sterling with the excellent retail figures in the UK (and the fact the pound has probably been a touch undervalued in the last week as speculators sold off positions).

We still have German inflation data in just over an hour, and wider EU figures on Monday, and if these are low then we could see the single currency slump even further against a resurgent Aussie as markets price in the ECB’s hand being forced possibly as soon as next week’s rate meeting.  If you are transferring Aussie Dollar to Euro then this release could be pretty key so keep a close eye.

With regards to sterling, I think the pound could claw some ground back but realistically I expect it to bounce around the 1.80 mark with the markets already pricing in positive news for the Aussie this week which may make next week’s RBA decision a little less important if we already have an idea of what the RBA are thinking.  However if other Board members aren’t as optimistic we may see the pound creep back up over 1.80 pretty sharpish.

If you have a currency transfer to make, then please feel free to contact Colm at cmg@currencies.co.uk or call me on 01494 787 478 and I would be happy to help you get the best exchange rate on Australian Dollars.

UK GDP data the key for the pound today. Has the tide turned with GBP/AUD? (Mike Vaughan)

Sterling found some support yesterday following much stronger than forecast retail sales data. This morning will see the release of the latest revision for Q4 UK GDP at 09:30. It is expected to be revised down from the previous quarter to 0.7% from 0.8% which could put some pressure on the pound, however should yesterday’s figures be anything to go by this forecast could be off the mark and may give the pound a welcome boost based on the recent trend.

In fact the pound on Wednesday was trading at its lowest level against the AUD since November last year. Moves have come about following a speech Wednesday night from RBA governor Glenn Stevens who predicted a housing boom was looming in Australia. He also indicated that there has been encouraging evidence that the handover from mining to non-resources industries in the Australian economy was under way. He was also to focus on China saying it was too early to say if the slowdown in China was a large one.

His comments seem to be a complete reversal from only earlier this year in which he cited concerns over the strength of the dollar and the impact it was having on exports and had still not ruled out interest rate cuts. Any chances of this certainly seem to have been dispelled and could this be the turning point for the Aussie?

Should you have an upcoming currency transfer to arrange involving the dollar, and in particular buying the Australian dollar, this trend is a concern. To discuss my views in more detail and the service we provide in full please email me with an overview of your currency requirement and I will assist you as best I can. Please email Mike at mgv@currencies.co.uk