The Pound managed to scrape some minor gains against the Australian Dollar during Wednesday’s trading session, though looking ahead, the Bank of England (BoE) may end up being a thorn in the side of Sterling.
The Australian Dollar found itself in low demand over the middle of the week, on account of a World Economic Forum (WEF) index release that placed Australia in a lacklustre position.
Pound and Australian Dollar Update: WEF Statements Triggered Widespread Investor Uncertainty
The Pound found was able to steadily appreciate against a number of its usual rivals on Wednesday, although actual direct domestic data was somewhat lacking for the UK.
The greatest source of support was actually a WEF statement, which put the UK at seventh place for its level of competitiveness, an improvement from the tenth place result that was seen last time.
Also coming from the WEF was a far less supportive statement, which was that;
‘Although the process and the conditions of Brexit are still unknown, it is likely to have a negative impact on the United Kingdom’s competitiveness through goods and financial markets as well as market size and, potentially, innovation’.
Meanwhile, the WEF put Australia in twenty second place, one point lower than in 2015. Vocalising how flat this movement was, the WEF said that Australia has been ‘remarkably consistent yet never stellar’.
Pound Sterling Exchange Rate Predictions: Fears of Second Interest Rate Cut may Limit GBP
The next notable UK ecostats to watch out for will come from the BoE, when the consumer credit result for August arrives on Thursday and the Financial Policy Committee minutes come on Monday.
While the credit stats are expected to show a rise from 1181m to 1500m, the minutes could well favour another 2016 interest rate cut, which would likely send the Pound spiralling down even without the actual decision yet being made.
Australian Dollar Future Forecast: RBA Interest Rate Decision Incoming, Freeze Expected
The Australian Dollar is set to be shifted by Reserve Bank of Australia (RBA) input over the coming week, when Tuesday brings October’s early interest rate decision.
While no change from 1.5% is forecast, this outcome is not set in stone, and interest rate decisions are typically volatility–inducing affairs, so the ‘Aussie’ may well make irregular movements late on Monday before the decision is announced.
Recent GBP AUD Exchange Rates
At the time of writing, the Pound Australian Dollar (GBP AUD) exchange rate was trending in the region of 1.6959 and the Australian Dollar Pound (AUD GBP) exchange rate was trending in the region of 0.5899.
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