GBP/AUD Exchange Rate Forecast
While the Pound to Australian Dollar (GBP/AUD) exchange rate climbed in response to Reserve Bank of Australia Governor Glenn Stevens’ attempt to jawbone the ‘Aussie’, the South Pacific asset recovered losses before the close of local trading. However, the Pound went on to post a notable advance against the Australian Dollar following the release of Bank of England meeting minutes.
For the first time in several years the minutes showed dissent among the nine-member Monetary Policy Committee, with two members voting for an interest rate hike. Although the UK has published disappointing inflation data since the BoE meeting was held, the minutes did trigger resurgence in interest rate hike speculation and the Pound jumped accordingly. Sterling largely held these gains throughout the European session. As stated by currency strategist Lee Hardman; ‘The vote shows that the Bank of England is gradually moving towards raising rates. Clearly the minutes are more hawkish than the quarterly Inflation Report, so that is providing some support for the Pound’.
During the Australasian session the Pound to Australian Dollar (GBP/AUD) exchange rate could fluctuate in response to Australia’s Leading index, although movement is more likely to be generated by China’s HSBC Manufacturing PMI. If the gauge of manufacturing pushes further into expansion territory it will support the Australian Dollar, but a disappointing result could see the Pound Sterling to Australian Dollar (GBP/AUD) extend gains.
GBP/NZD Exchange Rate Predictions
Since the Reserve Bank of New Zealand cut its domestic growth forecasts, the New Zealand Dollar has been trending lower against the majority of its currency counterparts. Faltering commodity prices, the prospect of the RBNZ suspending its rate hiking cycle and potentially slowing growth have all contributed to the ‘Kiwi’s weakened position.
The Pound’s BoE minutes-inspired rebound also helped the GBP/NZD pairing advance. On Thursday New Zealand’s Credit Card Spending figures and China’s Manufacturing PMI could provoke Pound to New Zealand Dollar exchange rate movement.
Domestic credit card spending increased by 0.7% in June, month-on-month. Another solid increase may help the ‘Kiwi’ recover recent losses. Meanwhile, China’s manufacturing measure is expected to have fallen from 51.7 in July to 51.5 in August. A surprising increase could bolster the commodity-driven New Zealand Dollar.
GBP/EUR Exchange Rate Today
The Pound Sterling to Euro exchange rate finally pushed back above the 1.25 level on Wednesday and managed to close the local session trending clear of this support level.
Today’s Markit Services, Manufacturing and Composite PMI’s for the Eurozone and its largest economies will help to decide what direction the GBP/EUR exchange rate takes before the weekend.
All three of Germany’s PMI’s are expected to have declined in August, with the composite gauge sliding from 55.7 to 54.6, the manufacturing measure falling from 52.4 to 51.5 and the service index easing from 56.7 to 55.5. If these declines do occur it will compound fears regarding the Eurozone’s flagging economic performance and could put the Euro under pressure. Similarly, if the UK’s retail sales report shows the monthly gain predicted, the Pound to Euro exchange rate could reach weekly highs today.
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