The Pound Sterling (GBP) to Australian Dollar (AUD) exchange rate fell by 0.30% on Wednesday as concerns over the upcoming Scottish Independence vote continued to weigh on the Pound and as positive GDP data supported the ‘Aussie’.
On Tuesday the Pound took a beating after investors grew concerned after the latest YouGov poll showed that support for Scottish Independence increased markedly last week as the lead for the NO campaign was slashed to just six points.
With just over two weeks left to go before the September 18th ballot, which will decide the future of the United Kingdom the markets, are becoming increasing spooked by the uncertainty as to what the outcome will be. Concerns over whether an independent Scotland would be able to use the Pound are also weighing on sentiment towards the UK currency.
‘The Yes side will now be able to argue with some conviction that they have gained momentum and can hope that they might yet secure a dramatic and historic victory. The No side, meanwhile, will be asking itself why it now apparently finds itself in a desperate last minute fight,’ said John Curtice, professor of politics at Strathclyde.
On Tuesday, the GBP/AUD exchange rate had managed to make gains after the Reserve Bank of Australia tried to down the stubbornly high Australian Dollar. Those gains were reversed on Wednesday however following the publication of a better than forecast Gross Domestic Product (GDP).
The data released by the Australian Bureau of Statistics showed that Australia’s GDP expanded by 0.5% in the second quarter of the year, a figure that was better than the 0.4% figure forecast by economists.
On a year on year basis the Australian economy expanded by 3.1% in the quarter, better than the 3% forecast by economists.
Following the release of the data, the ‘Aussie’ rallied by 0.45% against the US Dollar and pushed higher against the Euro.
Pound Sterling to Australian Dollar Exchange Rate Forecast
The Pound could regain some ground later in the session if the latest Markit compiled Services PMI report comes in strongly. A positive figure will add to Tuesday’s stronger than forecast Construction PMI report.
Traders of the Australian Dollar will be watching Thursday’s data releases for further signs as to the strength of the nation’s economy. The latest Balance of Trade and Retail Sales data are both due for publication.
Sterling meanwhile will be affected by the Bank of England’s interest rate and quantitative easing decisions.
Australian Dollar (AUD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Australian Dollar,
,US Dollar,0.9316,
Australian Dollar,,Pound Sterling,0.5654 ,
Australian Dollar,,Euro,0.7083 ,
Australian Dollar,,New Zealand Dollar,1.1197 ,
US Dollar,, Australian Dollar ,1.0733 ,
Pound Sterling,, Australian Dollar ,1.7684 ,
Euro,, Australian Dollar ,1.4116 ,
New Zealand Dollar,, Australian Dollar ,0.8929 ,
[/table]
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