Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Falls to 1.8381
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate fell by over 1.7% on Thursday as Australia’s impressive employment gain and UK Brexit fears took a toll.
Australia’s unemployment rate unexpectedly declined from a revised 6.2% to 6.1% in December thanks to a jobs gain of 37,400.
The South Pacific currency posted widespread gains after the data was released.
Meanwhile, the Pound was pressured lower against several of its main currency counterparts as the uncertain outcome of the UK general election put Britain’s future in the European Union in doubt.
Earlier…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate surged by over 0.6% during the European session as sliding commodity prices put pressure on the ‘Aussie’.
GBP/AUD Exchange Rate Advances as Copper Falls
The Australian Dollar posted declines against the majority of its currency counterparts overnight as copper became the latest commodity to dive.
Copper is Australia’s fifth largest mineral export and the price of copper futures dropped to a 5 ½ year low overnight.
This price slide mimics that seen with crude oil and iron ore.
The Pound Sterling to Australian Dollar exchange rate gains weren’t stymied by Australian Job Vacancies data. A 2.6% month-on-month increase was recorded for November and October’s decline was positively revised to -0.2%.
The Pound Sterling to Australian Dollar exchange rate achieved a high of 1.8784
According to currency strategist Elias Haddad; ‘We expect the Australian Dollar to consolidate in the short term, even though you have this plunge in commodity prices, as the US Dollar appears to be stabilising.’
The Pound Sterling to Australian Dollar exchange rate fell to a low of 1.8524
Similarly, another FX expert noted; ‘The market still appears to be short Aussie. While we are seeing some degree of consolidation, you should definitely sell the rally because the long-term bias is lower.’
Demand for higher risk assets was also undermined by the World Bank cutting the global growth forecast for this year from 3.4% to 3.0%.
World Bank chief economist Kaushik Basu asserted; ‘The global economy is running on a single engine… The American one. This does not make for a rosy outlook. […] The global economy is at a disconcerting juncture.’
This thought was mimicked by analyst Jameel Ahmad who noted; ‘The early morning news from the World Bank that global economic growth forecasts have been lowered will also lead to suspicions that there is going to be even less demand for commodities, which is just stacking the odds further for the bears.’
The World Bank also cut its growth projections for 2016 from 3.5% to 3.3%.
The Pound, meanwhile was supported as UK officials calmed deflation fears and Bank of England Governor Mark Carney made it clear that the central bank has no plans to introduce additional stimulus measures.
Carney’s comments also helped the Pound Sterling to Euro (GBP/EUR) exchange rate trend above 1.29.
As highlighted by industry expert Neil Jones; ‘Carney made it very clear there’s no more QE on the cards whilst Draghi makes it very clear QE is indeed on the cards. It’s the purest form of divergence in the market.’
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast
UK reports are in short supply today, but the testimony to be given by BoE Governor Mark Carney’s policymakers to lawmakers could provoke some Pound Sterling to Australian Dollar (GBP/AUD) exchange rate movement. Any references to interest rates will be particularly attended to.
Overnight, considerable GBP/AUD fluctuations could be caused by the UK’s RICS House Price Balance report and Australian employment figures.
The Australian economy is believed to have added just 5,000 positions in December, considerably less than the 42,700 jobs acquired in November.
The Australian Dollar to US Dollar (AUD/USD) exchange rate is currently trending in the region of 0.8128
The Australian Dollar to Euro (AUD/EUR) exchange rate is currently trending in the region of 0.6894
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 1.8660
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is currently trending in the region of 0.5355
