The Pound Sterling (GBP) has fallen slightly against the Australian Dollar (GBP/AUD) today, ahead of the last UK results of the week.
UK Data Forecasts remain Positive as GBP/AUD’s Immediate Movement is to be Decided
The Pound’s (GBP) fall against the Australian Dollar (AUD) has come mainly due to the Westpac Consumer Confidence Index for October rising from 93.9 points to 97.8 and the economic situation in China deteriorating, which has actually bolstered the ‘Aussie’ due to speculation that stricter measures will be put in place to ‘fix’ the Asian superpower’s fluctuations for good.
In the near-future, the last UK results of the week are looming and feature positive predictions for the UK Claims, Earnings and Employment results.
Earlier…
The Pound Sterling (GBP) has improved slightly against the Australian Dollar (GBP/AUD) today, following on from a bullish speech by Fed Bank of St. Louis President James Bullard, which has improved the condition of the US Dollar (USD) and subsequently devalued the ‘Aussie’ (AUD).
Westpac Input Remains Key Factor to Decide Early GBP/AUD Movement Tomorrow
Although Bullard’s relatively optimistic comments on a US interest rate decision have improved the faring of the US Dollar (USD) today, it is worth remembering that Bullard is not yet a voting member on the Federal Open Market Committee (FOMC) until next year, therefore the current advantage seen by Sterling may fade along with support for the ‘Buck’.
Returning to factors directly affecting the pairing, the Westpac results remain the next event that may noticeably produce a change.
Earlier…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has made little progress today due to both the UK and Australian economies being hit with disappointing news recently.
GBP/AUD Exchange Rate News: Negative UK Inflation triggers Sterling Downtrend Today
The Pound Sterling (GBP) has flatlined against the Australian Dollar (GBP/AUD) today and on a whole, the Pound has dived against its rivals. The greatest losses have included -0.9% against the Swiss Franc (GBP/CHF) and the Danish Krone (GBP/DKK), along with -1.3% against the Swedish Krona (GBP/SEK). Some of the scant gains made today have been by 0.3% against the South African Rand (GBP/ZAR) and the Russian Ruble (GBP/RUB).
As would be expected, the main reason for Sterling’s poor showing today has been the decline of the UK CPIs for September; the yearly and monthly inflation rate results both fell to -0.1% and the Core figure failed to rise to 1.1% as expected, instead only printing at 1%. In addition to these disheartening results, Sterling was negatively impacted by the UK Retail Price Indices for September and PPIs generally failing to meet up with expectations as well.
RBA Official Warns against Complacency, Australian Dollar Exchange Rate Declines as a Result
While the Australian economy has most recently been bolstered by the Roy Morgan Weekly Consumer Confidence Index posting a jump up from 110 points to 115.6, the ‘Aussie’ (AUD) has fallen in value today due to a warning made by Reserve Bank of Australia (RBA) Deputy Governor Phillip Lowe. Speaking at a conference, Lowe stated that ‘The probability of recession is low, but there is a probability that at some point we will have a downturn. The idea that the Australian economy can just keep growing without having short periods of contraction is a mistake. What we should be hoping for is that when those periods inevitably happen, that they are short-lived.’
The Australian Dollar has fallen by -0.4% against the New Zealand Dollar (AUD/NZD), -0.6% against the US Dollar (AUD/USD) and by -0.8% against the Euro (AUD/EUR) today; against the Pound Sterling (AUD/GBP), it has trended narrowly.
GBP/AUD Exchange Rate Forecast: Westpac Confidence Scores to Open Tomorrow ahead of UK Data
The rest of the day is likely to be fairly quiet for the UK and Australia given the scarcity of results, therefore the next events that are likely to move the GBP/AUD pairing are the Australian Westpac Consumer Confidence Indices for October and the set of UK Claims, Earnings and Employment data due tomorrow.
No predictions had been made for the Westpac result at the time of writing. Later on, the UK data is due for release and fortunately for Sterling investors, predictions have been generally positive across all of the fields covered. In particular, a 140k person rise has been predicted for the Employment Change result and a similarly beneficial -2.2k claim decrease is on the cards for the Jobless Claims Change figure for September.
Current GBP, AUD Exchange Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.0866 and the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4794 today.
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