Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Gain after Obama Voices Support for UK to Remain in EU
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate advanced by around 0.4% on Monday afternoon.
Despite ongoing concerns regarding the EU referendum and the UK’s slowing economic growth, the British Pound advanced versus most of its currency rivals on Monday. The appreciation can be linked to US President Barack Obama who stated that the UK should remain as part of the EU.
As a massive global political heavyweight, and someone who commands a great deal of respect, Obama’s words give real clout to the argument to remain in the European Union. What’s more, there will be growing concerns that trade with the US will diminish in the event of a ‘Brexit’.
Foreign Secretary Philip Hammond said it was important the public knew what other members of the Commonwealth felt as well as global powers such as the US and China. ‘Let’s just here how much they actually value Britain’s membership …just so the British people are properly informed in this debate and not deceived by some of the suggestions they are hearing about the welcome that might be awaiting us if we leave the EU from our English speaking partners.’
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 1.9060.
Australian Dollar to Pound Sterling (AUD/GBP) Exchange Rate Forecast to Decline after China’s Industrial production Missed Estimated Growth
Market sentiment dampened considerably over the weekend in response to disappointing data out of China.
China’s Industrial production advanced by 5.4% despite predictions of 5.6% output growth. Additionally, Retail Sales missed the median market forecast 11% growth with sales actually only managing 10.2%.
‘The overall growth profile remains still gloomy,’ said Zhou Hao, an economist at Commerzbank AG in Singapore. ‘The mix of data give us a worrying picture. Activity data remained weak while inflation and property prices are turning around.’
The ‘Aussie’ (AUD) has seen a marked rally of late in response to tireless efforts from the People’s Bank of China (PBoC) to shore up equities and fix the Yuan. However, the ‘Aussie’ rally is predicted to be short-lived as iron ore prices resume depreciation.
‘This is a smoke and mirrors rally’ in the Australian dollar, said Annette Beacher, head of Asia-Pacific research at TD Securities in Singapore. ‘The Aussie is merely following iron ore, and the underlying fundamentals have not changed. The short-squeeze in iron ore will fade, and then so will the Aussie.’
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate dropped to a low of 1.8942 during Monday’s European session.
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast: RBA Minutes in Focus
With a complete absence of domestic data during Tuesday’s session, the Pound Sterling will likely see movement in response to political developments, Euro and US Dollar movement. The GBP/AUD exchange rate, however, will likely see volatility in response to Reserve Bank of Australia (RBA) minutes. Given repeated concerns from RBA officials regarding overvaluation and the attempt to jawbone the Oceanic currency recently, the minutes are predicted to be dovish in tone.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate reached a high of 1.9107 during Monday’s European session.
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