With negative sentiment towards the British Pound (GBP) brewing after Tuesday’s inflation data printed disappointingly, the mood has improved a little following Wednesday’s British domestic labour market data. Meanwhile, both the South Pacific majors have struggled against elevated geopolitical concerns.
The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 1.8238.
The Pound Sterling to New Zealand Dollar exchange rate is currently trending in the region of 2.0320.
On Tuesday the Pound slumped against nearly all of its most traded currency competitors after inflation data showed an unwanted declination.
Both the Consumer Price Index and the Core CPI tumbled beyond market expectations, moving further away from the 2.0% inflation target outlined by the Bank of England.
A fresh stimulus measure from the People’s Bank of China caused both the ‘Aussie’ (AUD) and the ‘Kiwi’ (NZD) to advance despite cautious trading previously preventing high-yielding assets making significant gains.
Lu Jianxin, writing for Reuters, stated; ‘China’s money rates fell slightly on Tuesday after the central bank lowered the yield at its bond repurchase agreement auctions the second time since July, as part of an effort to lower real funding costs in support of a slowing economy […] The PBOC also drained 20 billion Yuan ($3.27 billion) from the money markets through 14-day repos on Tuesday.’.
The Pound Sterling to Australian Dollar exchange rate has dipped to a low today of 1.8237.
The Pound Sterling to New Zealand Dollar exchange rate has fallen to a low today of 2.0268.
On Wednesday the Pound rebounded against the ‘Aussie’ and the ‘Kiwi’ after British labour market data printed positively.
Both Average Weekly Earnings and the Claimant Count Rate met with economists’ predictions. Employment Change also showed a larger jobs increase than expected. The UK economy added 46,000 jobs in the three months to August rather than the 30,000 expected. This was, however, a marked slowdown on the job creation of 74,000 recorded in the three months to July.
Additionally, the Unemployment Rate and Jobless Claims Change both saw a positive declination. Also Weekly Earnings ex Bonus increased beyond the market consensus from 0.8% to 0.9%.
Whilst Australian domestic data has been relatively positive on Wednesday it has had little influence over ‘Aussie’ movement. This can be attributed to risk-averse trading driving market movement.
A lack of economic data pertaining to New Zealand until late on Wednesday evening has compounded the ‘Kiwi’ depreciation.
Forecast for the Pound to Australian Dollar and New Zealand Dollar Exchange Rate
As geopolitical concerns continue to dominate trader focus it is unlikely that either South Pacific currencies will make any significant gains.
Although sentiment towards the Pound is still well shy of positive, the improved labour market figures should go some way towards repairing the damage caused by cooling inflation.
The Pound Sterling to Australian Dollar exchange rate has advanced to a high today of 1.8292.
The Pound Sterling to New Zealand Dollar exchange rate has reached a high today of 2.0337.
Pound Sterling (GBP) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound,
,US Dollar,1.5920,
Pound,,Euro,1.2593,
Pound,,New Zealand Dollar,2.0335,
Pound,,Australian Dollar,1.8254,
US Dollar,,Pound,0.6281,
New Zealand Dollar,,Pound,0.4918,
Euro,,Pound,0.7942,
Australian Dollar,,Pound,0.5479,
[/table]
