Yesterday’s slightly disappointing UK services PMI may have left the Pound a little shaken but the British currency was still able to romp higher against its Australian peer.
The Australian Dollar was trading in the region of 0.5511 against the British Pound as of 09:50 GMT
The ‘Aussie’ was still feeling the pressure following yesterday’s lower-than-forecast domestic growth report and during local trading a second piece of concerning data caused the commodity-driven currency to extend and consolidate declines.
According to the Australian Bureau of Statistics, Australia’s seasonally adjusted trade deficit stood at AU$529 million in October, widening from a negatively revised shortfall of AU$271 million the previous month.
Economists were anticipating a reading of AU$300 million.
The result prompted this response from currency strategist Sean Callow; ‘The trade data was received poorly, with the deficit quite a bit wider than consensus.’
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate hit a low of 0.5493
The figures showed that, on the whole, exports stagnated while imports increased by 1 per cent.
That being said, exports to China did rise to record levels and industry experts foresee exports remaining a ‘key driver of growth’.
Expectations that the UK’s recent run of positive economic data will cause the Bank of England to leave fiscal policy unchanged when it meets later today also supported the Pound against the ‘Aussie’.
Chancellor of the Exchequer George Osborne will also be delivering the Autumn Statement today. In light of recent developments it is hoped that Osborne might issue encouraging comments regarding the UK’s recovery.
If these forecasts prove accurate the Australian Dollar’s bearish relationship with the Pound may continue into the weekend.
The AUD/NZD pairing also dropped overnight and the odds of the ‘Aussie’ dropping to parity with its New Zealand counterpart are increasing.
Current Australian Dollar Exchange (AUD) Rates
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The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9046 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6638 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5511 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1017 >
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1096 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5077 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.8156 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9070 <
Correct as of 09:50 GMT
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