Pound Sterling to Australian Dollar (GBP/AUD) Conversion Rate Predicted to Tick Higher on PBoC Stimulus
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate edged higher by around 0.2% on Monday afternoon.
On Monday, Pound Sterling exchange rates have made a fractional recovery since falling massively in response to EU referendum uncertainty. This is partly the result of correctional trading as investors take advantage of the Pound’s low trade weighting.
Positive domestic data also supported Sterling gains today. Net Consumer Credit, Net Lending Securities on Dwellings, Mortgage Approvals and M4 Money Supply data all bettered the respective market consensuses.
In response to the UK’s Mortgage Approvals data, Stephen Smith, Director, Legal & General Housing Partnerships stated: ‘It is clear to see that demand for home ownership is still rising in what looks to be a strong start to 2016. Remortgaging has also seen a relative increase for the second month in a row, with more homeowners taking advantage of the competitive deals currently on offer. We expect to see these figures continue to climb as many potential second home owners and landlords hurry to complete before the Stamp Duty changes are implemented in April.’
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 1.9476.
Meanwhile the Australian Dollar has been outperforming several of its currency rivals since the Reserve Bank of Australia (RBA) opted to hold the overnight cash rate despite external risks to domestic economic growth.
On Monday the ‘Aussie’ (AUD) extended gains versus a number of its major peers in response to intervention from the People’s Bank of China (PBoC). China’s central bank is showing little sign of pulling away from using varied tools to help reduce the pace of the economic slowdown.
As China is Australia’s biggest trading partner, any sign that the PBoC’s stimulus measures are having a positive impact on China’s economic outlook bode well for the Oceanic nation.
Pound Sterling to New Zealand Dollar (GBP/NZD) Conversion Rate Predicted to Rally ahead of Global Dairy Auction
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate advanced by around 1.0% on Monday afternoon.
As traders await results from the Global Dairy Trade auction, due for publication during Tuesday’s European session, the New Zealand Dollar dived versus most of its major peers.
Unlike its South Pacific counterpart, the New Zealand Dollar did not advance in response to intervention from the Shanghai-based central bank. This was due to disappointing domestic data dominating trader focus.
Of particular disappointment was February’s Business Confidence which dropped dramatically from 23 to 7.1. ANZ chief economist Cameron Bagrie said New Zealand’s local businesses were expecting lower profits thanks to global volatility; ‘The finger can be pointed at the global scene. It’s been a rough start to the year … Our economy is not immune from global pressures. We are a small, commodity-dependent debtor nation.’
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.1103.
GBP/AUD and GBP/NZD Forecast: China’s Manufacturing PMI to Provoke Changes
Given the absence of further British economic data to provoke volatility, the Pound Sterling to Australian Dollar, New Zealand Dollar exchange rates will likely hold current positions for the remainder of the European session. With that said, any mention from a UK official regarding the EU referendum may cause changes.
Tuesday’s European session is likely to see Pound Sterling movement with the publication of the UK Manufacturing PMI. British manufacturing output has been a real drag on sectoral growth of late so any positive result should cause Sterling to appreciate.
For those invested in the ‘Aussie’ or the ‘Kiwi’ (NZD), China’s Manufacturing PMI will be of significance. If China’s manufacturing output remains in contraction territory, as has been predicted, the antipodean assets will likely decline.
The New Zealand Dollar will also be subject to volatility with the Global Dairy Trade Auction results due.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending within the range of 1.9342 to 1.9521.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending within the range of 2.0944 to 2.1157 during Monday’s European session.
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