The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate edged lower by around -0.64% on Friday afternoon.
This is as a result of slower-than-forecast British factory output. The Australian Dollar, meanwhile, is generally trending lower versus its major peers after manufacturing data from China showed output to have slowed in December. A larger ‘Aussie’ (AUD) declination has been avoided thanks to advancing gold prices.
The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 1.8924.
Pound Sterling (GBP) Exchange Rate Tumbles on Manufacturing
Although British data produced mixed results on Friday, the negative data overshadowed any positivity. Net Lending to Individuals increased from £2.6 billion to £3.3 billion, Mortgage Lending ticked higher from £1.6 billion to £2.1 billion and Bank of England Consumer Credit increased from £1087 million to £1252 million. However, the Manufacturing PMI dropped from 53.5 to 52.5 and Mortgage Approvals softened from 59,430 to 59,030.
On the UK manufacturing, David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, stated; ‘Though vendor performance deteriorated a little and there were some minor shortages, the impact of this has not been significant enough to rattle confidence in the sector.’
The Pound Sterling to Australian Dollar exchange rate has fallen to a low today of 1.8969.
Australian Dollar (AUD) Exchange Rate Softens on China’s Manufacturing
The Australian Dollar softened against the majority of its most traded rivals after China’s Manufacturing PMI dropped to 50.1 which is dangerously close to the 50 mark which separates growth from contraction.
However, although the poor Chinese data has caused an ‘Aussie’ (AUD) declination in the short-term, the possibility that the People’s Bank of China will respond by further loosening monetary policy has the potential to support an ‘Aussie’ uptrend.
The Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Decline
Given that there is a lack of domestic data to provoke changes, the Pound Sterling to Australian Dollar exchange rate is likely to continue trending lower.
The Pound Sterling to Australian Dollar exchange rate advanced to a high today of 1.9139.
