The Pound Sterling (GBP) has worsened its faring against the Australian Dollar (GBP/AUD) today, seeing a drop of -0.6% against the ‘Aussie’ (AUD).
Little is Ordinary as ‘Aussie’ resists US Pressure
While the Pound (GBP) has fluctuated wildly today, the ‘Aussie’ (AUD) has come out on top from the market turmoil of yesterday, rising across the board, against all odds. The two largest factors that should have sent the Australian Dollar spiralling downwards were the fact that the Chinese economy is still exhibiting signs of a ‘slowdown’, and the more concrete 10.6 point rise in the US Consumer Confidence score for August.
Against these clearly detrimental events, the Australian Dollar instead shot up, seeing a 1.7% gain against the Euro (AUD/EUR). However, it wasn’t all cause for celebration, as the ‘Aussie’ dropped by -0.8% against the also-rallying New Zealand Dollar (AUD/NZD).
Earlier…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has declined today, despite Australia’s markets and industries posting heavy losses yesterday.
Australian Mining Giants Predict Rubberised Reaction in China, ‘Aussie’ Rises accordingly
The Pound Sterling (GBP) has failed to repeat the gains made yesterday against the Australian Dollar (GBP/AUD) and is now trending in a narrow range. This comes as despite (or perhaps because of) the ‘Black Monday’ crash yesterday, major Australian mining companies like Fortescue Metals Group (FMG) and BHP Billiton Ltd are predicting increased demand for iron ore from China.
BHP Chief Executive Officer Andrew Mackenzie said ‘In the short term we expect ongoing economic reforms in China to contribute to periods of market volatility’.
Earlier…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has soared today as the ‘Aussie’ (AUD) was beset by another blow to its iron ore mining industry.
Pound Sterling Gains Inspired by Commodity-Currency Weakness – Mixed Overall Performance
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has risen by 1.7% today but elsewhere the Pound (GBP) has been wildly inconsistent. Losses included a -0.8% drop against the Czech Koruna (GBP/CZK) and a loss of over -1.1% against the Japanese Yen (GBP/JPY) and the Hungarian Forint (GBP/HUF). Significant gains for the Pound included a rise of 1.2% against the Indian Rupee (GBP/INR) and a greater rise of over 1.7% against the New Zealand Dollar (GBP/NZD) and the South African Rand (GBP/ZAR). The Pound’s greatest advance today was a 3.1% increase against the Russian Ruble (GBP/RUB).
The Pound’s positive performance today can be attributed to the Confederation of British Industry (CBI) upgrading its GDP forecast for the UK in 2015 and 2016, from 2.4% and 2.5% up to 2.6% and 2.8% respectively. Negative impacts include a survey by the EEF which showed that around a third of UK manufacturers thought that they were lagging behind foreign competitors.
AUD/GBP Exchange Rate Dives as Iron Ore Overflow infuriates Australian Companies
The Australian Dollar (AUD) has flopped by -1.6% against the Pound Sterling (AUD/GBP) today and has seen a broad decline overall. While the ‘Aussie’ has fallen by over -1.4% against the US Dollar (AUD/USD), a far greater loss of -2.5% has been recorded against the Euro (AUD/EUR). The only real gain has been by 0.9% against the New Zealand Dollar (AUD/NZD)
This slump in performance ties in with a -88% plunge in value for Fortescue Metals Group (FMG), one of Australia’s biggest iron ore extractors and exporters. In addition to having to cope with a crash in pricing and a reduction of demand from China, the Australian mining industry faces increasing competition from South America. Speaking about the situation, FMG Chairman Andrew Forrest said that it was ‘market vandalism and self-harm’ for companies like those located in Brazil to flood the market with cheap iron ore, especially when demand was dropping.
Stevens Speech may hold some Hope for Floundering ‘Aussie’, Sterling to maintain Status Quo
The Australian Dollar (AUD) may receive a boost to its performance tomorrow after Reserve Bank of Australia (RBA) Governor Glenn Stevens delivers his speech on the current state of the Australian economy. Any hawkish comments are sure to be keenly scrutinised and such occurrences aren’t out of the question, as recent RBA speeches have been focused on finding a sector to replace Australian mining in priority now that the record-low prices don’t show any signs of abating.
The UK has no major data releases today or tomorrow, so the Australian Dollar will be the deciding factor in the GBP/AUD performance.
Current GBP, AUD Exchange Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.1794 and the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4591 today.
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