Demand for the Australian Dollar was supportively high over Wednesday’s trading session, although mainly on account of the seriously devalued state of the US Dollar.
The Pound made little in the way of gains over the midweek trading session, owing to still-high levels of uncertainty among investors about whether the Bank of England (BoE) would cut the UK interest rate again in 2016.
Australian Dollar in High Demand on Global Uncertainty, Pound Softened by BoE Bulletin
Australian Dollar exchange rates were extremely favourable during Wednesday’s trading session, thanks in part to overall low confidence in other major peers such as the Pound, Euro and US Dollar.
Direct Australian data wasn’t especially positive, however; the Westpac leading index for August fell on the month from 0.08% to 0%. Meanwhile, a speech from Reserve Bank of Australia (RBA) official Alexandra Heath mainly focused on how diversity in the hiring process can be improved, rather than talking about monetary policy.
For Sterling, losses were caused over the afternoon by the BoE quarterly bulletin, which showed that businesses were apparently slowing down on making investments since the EU Referendum result.
Australian Dollar Predictions: All Eyes on New RBA Governor as Parliamentary Grilling Looms
The performance of new RBA Governor Philip Lowe is expected to feature heavily when it comes to forecasting the Australian Dollar.
In addition to outlining how he will manage the central bank to Parliament on Thursday, Lowe will also be coming under scrutiny from economists in general, given that after ten years with Glenn Stevens at the helm, the new Governor has some big shoes to fill.
Pound Sterling Outlook: BoE Economic Evaluations to Move GBP in the Future
The next events likely to shift the Pound will focus on the BoE, when the central bank releases its Financial Policy Committee statement on Thursday morning.
Any comments from the central bank are set to have an amplified impact from now on, given that the September minutes gave strong indications that a second interest rate cut could be taking place before the end of 2016.
Recent AUD GBP Exchange Rates
At the time of writing, the Australian Dollar Pound (AUD GBP) exchange rate was trending in the region of 0.5837 and the Pound Australian Dollar (GBP AUD) exchange rate was trending in the region of 1.7136.
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