Reserve Bank of Australia intervened today and were looking to Buy Australian Dollars

Bloomberg reports that the Reserve Bank of Australia intervened today and were looking to Buy Australian Dollars, following a similar intervention on Friday. The only comment we have from the RBA is that the bank “provided more liquidity to the foreign exchange market.'' We don’t even know the name of the spokesman, let alone the amount. The NKS says “Foreign Exchange Traders said the bank's entry level was US$0.6125. Yet, as of 0550 GMT, the pair is even lower at US$0.6088.” The RBA confirmed the Friday intervention on Sunday, perhaps hoping to scare of Foreign Exchange traders when the market opened on Monday. It didn’t work.

Pounds to Australian Dollars currently 2.5100

Buy For Now

Barbara Rockefeller
Forex Trading Reports

Buying Australian Dollars - Get the Best Exchange Rates visit IMS Foreign Exchange

This is probably going to go down in Foreign Exchange history as one of the dumbest trades ever

Australian Dollar Outlook

We were wondering about the bizarre behavior of the Australian Dollar exchange rate on some days in recent weeks.

Now we may have an explanation.

According to the WSJ, Citic Pacific, the bluest of the blue-chip Chinese companies in Hong Kong (called, naturally, a red chip), could lose HK$15.5 billion (US $2 billion), and possibly more, because of leveraged positions on the Australian dollar. Citic has a big investment in an Australian mining company.

The WSJ says “the mining investment requires the company to buy equipment and supplies in Australian dollars. It isn't unusual for companies to hedge their foreign currency exposure. But Citic Pacific did something more: It turned to structured products dubbed "accumulators" that obligated it to buy a specified amount of Australian dollars"

In this case, about nine billion Australian dollars (US$6.1 billion at current exchange rates), at a fixed price.

“The Australian dollar's sharp downturn in recent months, a side effect of the global credit crunch, has left Citic badly exposed. Already, the bets have cost the company HK$807.7 million in realized losses and would cost it HK$14.5 billion more if they were marked to market at current values. Because Citic Pacific retains open positions, the losses could deepen if the Australian dollar continues to slide against the U.S. dollar.”

Bloomberg says CITIC stock fell 66% since the disclosure on Oct 20. It has “four times more money riding on the Australian dollar than it earned last year… [with a commitment] to buy as much as A$9.44 billion … at an average price of 87 U.S. cents. The currency traded at 66.72 cents as of 7:54 p.m. in Sydney” today. This is probably going to go down in Foreign Exchange history as one of the dumbest trades ever, along with VW and Bank Negara from the 1980’s.

Pounds to Australian Dollar exchange rate is currently 2.4473 and i you need to Buy Australian Dollars a good level at present is 2.4800 if you can get it

Buy for Now

Barbara Rockefeller
Forex Trading Reports - Click here for a free trial

Buy Australian Dollars at the best exchange rates visit IMS Foreign Exchange or call +44 207 183 2790

Australian Dollar starts slow and improves aganist the Pound

Hi All,

The Australian Dollar is staying very volatile with the AUD exchange rate but showed a lot of fight late today climbing back over the 0.7000 against the US Dollar and the pounds to Australian Dollar exchange rate heading back to 2.4300 which was last weeks low.

The range on the pounds to Australian dollars range is what is alarming me the most as we started the day at 2.5100 and almost 3% lower. These ranges are normally what emerging currencies trade per day, not the humble Aussie dollar. Seams to me that the idea that Australia is a commodity currency and as the world slips into a recession the Australian economy is going to suffer is the main story - but wait the Australian Government hasn't yet to bail out a bank never mind 3-4 banks, our housing market is starting to pick up, you can still get a mortgage.

If I was a gambling man and it is fair to say i am by the nature of my job, the Australian Dollar may weaken yes! but against the US dollar, Swiss Franc, Euro and Japanese Yen, not against the Pound. The UK seams to be rewarded for the prompt action of the British Government rather than a sound economy!

The UK economy is one built on sticks - the banking sector delivered record bonus after record bonus that helped fuel London property prices and helped the economy boom. But what is going to happen now those bonuses are gone and the Governments non-dom tax hits home? Bankers and those in Hedge Funds are leaving the capital and those staying are going to rein things in. Money is leaking out of the loop fast and it will filter down the chain even faster as the banker earning £300k lets his nanny, cleaner and Aston Martin go as their income comes back under £60k as banks fail to pay bonuses this year. And this is only one industry the follow on effects will be huge!!!

Take care when you Buy Australian Dollars not to be to greedy the - remember that the exchange rate only 2 weeks ago was almost 2 to 1 and 2.5 to 1 is the bargain of the year as the Australian economy proves jow robust it actually is.

Good Luck and buy for now

Damian George
IMS Foreign Exchange

Buying Australian Dollars call for the best exchange rates + 44 207 183 2790

Australian Mortgage Interest rates heading lower - Australian Dollar Outlook bleak

Hi All,

Looks like the Australian Dollar exchange rate is set for another tumble as experts suggest that the Reserve Bank of Australia needs to cut rates further to fend off the "r" word. Macquarie Group interest rate strategist Rory Robertson was quoted in news.com.au that interest rates will be as low as 4.25% by next year.

Whilst this is good for picking up Australian property prices and Australian Buliding Industry which has been extremley slow, but this is not ultimately what the RBA seams concerned with. what seams to be the bigger worry is the high level of consumer debt and slowing growth in Australia which is now at alarming levels. (Even inflation is on the back burner for the time being.)

"As the financial conditions continue to deteriorate, the Reserve Bank is becoming increasingly worried about the outlook for growth," Mr Robertson said. "So the Reserve Bank is cutting aggressively to limit the risk of recession in Australia."

But enough of this doom and Gloom what this means for many of us in the UK is that if you are migrating to Australia you are now looking at a much better rate to buy Australian dollars and if you are an Australian expat you have now have a chance to buy and home and send money home at a much better AUD exchange rate

Pounds to Australian dollars currently 2.5800

Regards

Damian George

Need to buy Australian Dollars call IMS Foreign Exchange for a free quote +44 207 183 2790

Australian Dollar fell out of favour today after yesterday’s brief rally

Hi All,

The Australian Dollar fell out of favour today after yesterday’s brief rally. It appears the world got ahead of itself and realised that the sky is still falling and there is now a rush to “safe” money mainly US Dollars, Euros, Pounds and Japanese Yen.

Being the loyal Australian I am, I am finding this very difficult to understand why the market keeps selling Australian Dollars at every point but sometimes things done make sense even though you want them to. If you are migrating to Australia this really doesn’t matter too much.

Look for the Pound to Australian Dollar exchange rate to say in the 2.48-2.58 range until something else happens.

Good news for those wanting to sell Australian Property – the new bailout package and first home buyers grant increases are working and 1st home buyers are re-entering the market and will hopefully push prices up, stimulate investment in Australia and boost the Australian building industry. (Good to see also 1st home buyers can get a Australian mortgage - unlike the UK.)

Pounds to Australian dollars exchange rate currently 2.5500

Regards

Damian

Need to Buy Australian Dollars? Best Australian Rates visit

IMS Foreign Exchange or call +44 207 183 2790 for a free quote

Australian Dollar Exchange Rate fights back against the Pound but Outlook suggests further Falls

Hi All,

The Pound to Australian Dollar exchange rate yesterday saw one of the most surprising rally's I have ever seen as the Dollar exchange rate went from 2.2700 to 2.7200 almost a 20% jump. The question everyone is asking is;

Why did the Australian Dollar fall by so much?

Simple answer the global economy is in melt down and foreign exchange traders around the world are having to take off complex carry trades which are bets on interest rates and now heading to the safe haven of US Dollars, Swiss Francs and Japanese Yen.

(The Australian Dollar and the New Zealand Dollar for the matter has been used as a high yielding currency and traders have been borrowing from Japan by buying Japanese Yen which current interest rate is 0.5% and investing in the Australian and NZ market at 7%+. )

Before you rush to buy Australian dollars there is further risk these trades will drag the Australian Dollar to US Dollar back to the 2001 levels 0.4775 this will correlate to a Pound to Australian Dollar Buy Rate of around 2.900/3.000 a level that most people didn't expect to see this year or next for that matter.

Traders will watch technical levels on the Australian dollar today, said Westpac's Rennie. The currency closed below 67.15 U.S. cents yesterday, a 61.8 percent retracement from its April 2001 low to a July 2008 high, according to a series of numbers known as the Fibonacci sequence. The close below that level could "open up a deeper sell- off and a long-term target to the 2001 lows at 47.75,'' wrote London-based Kevin Edgeley, a technical analyst at Goldman Sachs Group Inc. in a research note dated Oct. 8. source Bloomberg

So if you are migrating to Australia or just an expat sending money to Australia enjoy the bonus of a global meltdown/credit crisis - you are one of the very people that we benefit from the current market conditions.

Buy for now

Need to buy Australian Dollars at the best rate

Call IMS Foreign Exchange +44 207 183 2790 for a Free Australian Dollar quote.

Pounds to Australian Dollars now 2.5500 - why is the AUD outlook so bad?

Australian Central Bank last night expanded the liquidity assistance it provides commercial banks in its daily money market operations. The Reserve Bank of Australia (RBA) said it would ease restrictions on the types of residential mortgage back securities (RMBS) it will accept as collateral for loans. It will also offer 6- and 12-month repurchase agreements each day in its operations, essentially lending for longer periods.

The Australian Dollar again came under selling pressure across the board and is down 3% against most currency crosses today. Seams like we are shooting the messenger as the Australian Central bank seams to be acting responsibly compared to the ECB and the Bank of England.

Pounds to Australian Dollars exchange rate currently 2.5600

Commonwealth Bank of Australia buys BankWest

Commonwealth Bank of Australia has agreed to buy British bank HBOS's Australian unit BankWest for A$2.1 bln, to boost its market share in fast-growing Western Australia. CBA said it would raise A$2 billion of Tier 1 capital in an institutional placement of securities to help fund the BankWest deal.

Well good on the CBA buying what i always thought was one of Australia's best banks - seams the biggest loser out of the credit crunch is the customer as choice and competition is disappearing out of the market. All we need now is a Crude Oil crisis and Shell and BP can merge funded by the tax payer and they can return billion pound profits.

This is just one big mess

But on a positive note if you are migrating to Australia the pounds to Australian Dollar exchange rate has rallied yet again today and you can Buy Australian Dollars at 2.5500

Buy for now

IMS Foreign Exchange

Pounds to Australian Dollar now 2.4800

Hi All,

To everyone's surprise the Pounds to Australian Dollars exchange rate has rallied to the highest point this year. That GBPAUD Exchange rate is currently 2.4880 from 2.2800 a change of 9% change on the day, almost unheard of in the world of foreign exchange. I am at a loss to explain the massive change in the AUD exchange rate but the general sentiment is that it is outright panic and foreign exchange traders are running to the safe havens on the Swiss Franc and the Japanese Yen. ( Is the Australian Banking System really that bad shape that traders are scared about borrowing from Japan to invest in Australian government back bonds at 7% or 6.5% after the interest rate cut - it appears so)

Although the Reserve Bank of Australia is expected to cut Australian interest rates by 0.50% this response is ridiculous and I expect the the Australian Dollar to come back to the 2.3000 level shortly which is more realistic as the Bank of England. What has made matters worse is that there is Public Holiday in Oz that is leading to extremely thin trading conditions and exacerbated the move.

But for those of you in the UK thinking about emigrating to Australia or paying off an Australian Mortgage it is music to your ears as being in the UK makes sense again.

Dont be foolish - is you are buying Australian Dollars you have been given a gift horse here - Buy Australian Dollars while you can at these levels - when normality returns so will the Australian dollar strength.

Buy for now

IMS Foreign Exchange - Click here for Australian Dollar Trading Reports

Buy Australian Dollars at best rates - call 0207 183 2790 for a free quote

Australian Interest Rates to Fall, But not Mortgage Rates

Hi All,

Seams like the Reserve Bank of Australia is set to cut interest rates on the 7th October but word is out that the big four Australian Banks (Commonwealth Bank, NAB, Westpac and the ANZ) will not be passing on anyt of the interest cuts due to the current credit crisis and increased funding costs.

We have written about this in the past about the greed of banks but nothing has been done to date and the current Australian Government seams to have riased the white flag on this issue with Wayne Swan the current Australian Treasurer conceeding that;

"What we have seen in recent weeks is a very big spike in borrowing costs internationally and that will certainly have an impact on domestic institutions. I am not going to speculate about what the Reserve Bank will do next week, but we do know when borrowing costs go down rates should follow. Of course, the reverse also happens - when borrowing costs are pushed up and, particularly pushed up sharply, that has consequences."

And while Opposition Leader Malcolm Turnbull disagreed saying banks should pass on the full amount i believe this is more of a voter pleasing stance rather than political view point as he has nothing to lose in this argument.

So there you are, good news - those needing a Australian Mortgage the RBA is going to cut interest rates! Bad News is - Greedy Australian banks are not going to be cutting Australian Mortgage Interest Rates! - Super

Pounds to Australian Dollars currently 2.2370

Buy for Now

IMS Foreign Exchange - need to buy Australian Dollars call 0207 183 2790