The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate ticked lower by around 0.14% on Wednesday morning.
After the UK BRC Shop Price Index declined beyond expectations in February, the Pound softened fractionally versus most of its major peers. The declination has been minimal, however, as traders await the Services and Composite PMIs.
Australian fourth-quarter Gross Domestic Product gained a little on a quarterly basis, and matched forecast declination on a yearly basis. This saw the ‘Aussie’ (AUD) edge higher versus the majority of its most traded currency rivals.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 1.9625.
Yesterday…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate softened by around -0.66% on Tuesday morning.
After British construction data eclipsed expectations on Tuesday morning, the Pound edged higher versus many of its major peers. However, the gains have been laboured as traders are reluctant to invest heavily with the forthcoming general election amplifying political uncertainties.
The Australian Dollar, meanwhile, climbed across the board after the Reserve Bank of Australia (RBA) avoided cutting their benchmark interest rate by the forecast 25 basis points. Given that the hangover from the most recent rate cut has not abated, and the domestic reaction has not yet been fully realised, the RBA have avoided downing a shot of absinth in order to provoke a hair of the dog devaluation.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 1.9668.
Pound Sterling (GBP) Exchange Rate Edges Higher on Construction Data
The solitary British economic data publication printed positively on Tuesday, allowing the Pound to tick higher versus many of its major peers. The Construction PMI was forecast to drop from 59.1 to 59.0, but the actual result reached 60.1.
Tim Moore, Senior Economist at Markit said; ‘The latest survey highlights renewed vitality within the UK construction sector, as output growth picked up further from the soft patch seen at the end of 2014. Housing, commercial and civil engineering activity all expanded at the quickest rates since last October, helped by sharp rises in new business volumes and an improving economic backdrop.’
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate dropped to a low today of 1.9589.
Australian Dollar (AUD) Exchange Rate Rallies on Positive Data
As explained above, the fact that the RBA avoided further cuts to the cash rate saw the South Pacific asset advance significantly. ‘The Board judged that, having eased monetary policy at the previous meeting, it was appropriate to hold interest rates steady for the time being,’ RBA Governor Glenn Stevens said after the bank’s monthly policy meeting. ‘Further easing of policy may be appropriate over the period ahead. The Board will further assess the case for such action at forthcoming meetings.’
In addition to the RBA, the ‘Aussie’ (AUD) gained thanks to a succession of positive data results. Weekly Consumer Confidence, House Prices, Commodity Price, Building Approvals, Current Account Balance and Net Exports of GDP all managed to better median market forecast figures.
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Hold Losses
Given the extent of the ‘Aussie’ advance, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is likely to hold losses for the remainder of Tuesday’s trade. There is the possibility of GBP/AUD volatility later on Tuesday with the Australian Performance of Service Index due for publication.
Wednesday will see heightened volatility for the pairing with Australian growth data and British services data having enough weighting to spark movement.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate climbed to a high today of 1.9813.
