After British construction data failed to meet with forecasts, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate softened by around -0.22% on Friday. Despite a lack of domestic data, the Australian Dollar has advanced against the majority of its most traded rivals thanks to comments made by the Federal Reserve’s William Dudley on Thursday, which caused the US Dollar to soften across the board.
The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 1.7997.
UK Construction Hurts Sterling (GBP)
Seasonally adjusted Construction Output was forecast to increase from 0.8% to 4.3% on a year-on-year basis, but the actual result only managed to reach 3.5%. Similarly, monthly Construction Output was unable to meet with the median market forecast of an advance from -3.0% to 4.0%, with the actual result only reaching 1.8%.
‘Friday’s data showed that house building remained robust, expanding by 5.1 percent in the third quarter from the second quarter. More public housing was built than in any quarter since the data began in 1997,’ stated David Milliken, writing for Reuters.
The Pound Sterling to Australian Dollar exchange rate has dropped to a low today of 1.7982.
US Dollar Decline Boosts ‘Aussie’ (AUD)
On Thursday, Federal Reserve Bank of New York President William Dudley said that the US Central Bank was not ready to increase interest rates. The US Dollar declined significantly as a result, and continues to do so on Friday. This has given a healthy boost to the Australian Dollar for its high-yield qualities.
Dudley asserted that while there’s been considerable improvement in the US economy, ‘it still is premature to begin to raise interest rates–there remains slack in the labour market and the inflation rate is still too low.’
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Strengthen
Given that the ‘Aussie’ upsurge is generally as a result of a softening US Dollar, ‘Greenback’ (USD) appreciation may hurt the South Pacific asset. US Retail data are forecast to improve and should it meet with expectations the US Dollar is likely to recover from its brief bearish run. This would have a moderate strengthening effect on the GBP/AUD exchange rate.
The Pound Sterling to Australian Dollar exchange rate has advanced to a high today of 1.8052.
UPDATE
GBP/AUD Slowly Recovers ahead of US Data
The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 1.8008.
As we near the US retail sales data, which is forecast to appreciate, the Pound to Australian Dollar exchange rate has gradually strengthened. Should US data prove positive, the Australian Dollar is likely to soften against its major peers. Sterling movement, meanwhile, is as a result of foreign currency changes.
GBP/AUD Recovers on US Retail Sales Data
The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 1.8022.
After having softened significantly in the aftermath of disappointing British data, the Pound Sterling to Australian Dollar exchange rate has recovered its losses. This can be attributed to better-than-expected US retail sales data which allowed the US Dollar to rebound from a sustained bearish run. This has seen less demand for high-yielding currencies and, thus, the Australian Dollar has softened.
Australian Dollar (AUD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Australian Dollar,
,US Dollar,0.8693,
Australian Dollar,,Euro,0.6983,
Australian Dollar,,Pound,0.5551,
Australian Dollar,,New Zealand Dollar,1.1042,
US Dollar,,Australian Dollar,1.1501,
Euro,,Australian Dollar,1.4317,
Pound Sterling,,Australian Dollar,1.8014,
New Zealand Dollar,,Australian Dollar,0.9056,
[/table]
