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Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast: Sterling Flops Today despite Growing Retail Sales

Australian Dollar Currency Forecast

The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has declined noticeably today, with GBP failing to derive any notable benefit from positive UK sales data.

GBP/AUD Exchange Rate News: UK-EU Referendum Discussion puts GBP Investors in Sour Mood Today

The Pound Sterling (GBP) has declined across the board today, with gains  being few and far between. These losses have included -0.3% against the Australian Dollar (GBP/AUD), -0.4% against the US Dollar (GBP/USD), -0.7% against the Indian Rupee (GBP/INR) and -1.1% against the Norwegian Krone (GBP/NOK). In terms of gains, a slight uptick against the Swiss Franc (GBP/CHF) has been the only one to speak of. For investors, these uninspiring results are likely unwanted reminders of Sterling’s performance at the beginning of the week.

Although the UK November Retail Sales figures all rose above expectations, the Pound remained down due to events in Brussels. Prime Minister David Cameron is meeting with European Union leaders today in order to lay out his desires regarding the modification of the current UK-EU relationship. However, a number of observers have identified a major sore point for nations such as France and Germany, which is Cameron’s wish to prevent ‘benefit tourism’ by stopping migrants from claiming benefits until they’ve been resident in the UK for more than 4 years.

Australian Dollar (AUD) Holds Steady Today despite Fed Interest Rate Hike

The Australian Dollar (AUD) has defied expectations today and remained above water against many of its rivals. This has unusually come after the Federal Reserve opted to finally raise the US interest rate from 0.25% to 0.50% after almost a decade of no rate hikes. The fact that the Fed’s decision was priced in far in advance is likely to have been a decisive factor in lessening the negative impact of this result and ultimately causing the ‘Aussie’ to go on a few minor uptrends.

Among the Australian Dollar gains of the day have been 0.3% against the Chinese Yuan (AUD/CNY) and 0.2% against the Pound Sterling (AUD/GBP), although the Australian currency has also fallen by -0.2% against the US Dollar (AUD/USD).

GBP/AUD Exchange Rate Forecast: CBI Trades Figures to Cause First Movement Next Week

With no further direct UK or Australian data out this week, the only remaining source of GBP/AUD movement before the weekend is likely to be the US Dollar (USD). On Monday, the Pound (GBP) may generate movement when the CBI Distributive Trades result for December is released.

Current GBP, AUD Exchange Rates

The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.0773 and the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4816 today.

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