Pound Sterling to Australian Dollar (GBP/AUD) Conversion Rate Predicted to Advance after ANZ Comments
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate strengthened by around 0.6% on Friday morning.
Despite disappointing British Consumer Confidence data, Pound Sterling advanced versus nearly all of its most traded currency peers. The appreciation can be linked to traders taking advantage of the Pound’s ultra-low trade weighting after the recent slide opened up some attractive buying opportunities.
February’s GfK Consumer Confidence Survey was predicted to drop from 4 to 3, but the actual result fell to 0. Joe Staton, head of market dynamics at GfK, said people were clearly concerned.
‘Despite the positive impact of continued low interest rates and subdued inflation on day-to-day household budgets, the feeble outlook for growth and a variety of economic uncertainties since the start of the year has depressed optimism.’
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 1.9401.
On the other side of the globe, the Australian Dollar softened versus nearly all of its most traded currency rivals today.
The depreciation can be linked to comments from ANZ that the Australian Dollar is as much as 10% overvalued.
Richard Yetsenga, global head of financial markets research at ANZ stated; ‘Apart from the height of the reserve diversification thematic in 2012, the AUD is essentially as overvalued as it has ever been.’
Adding:
‘While it is difficult to see the immediate catalyst for an imminent decline in either the AUD or NZD, and it is certainly true that the multi-year declines in AUD and NZD appear to be quite mature, these sorts of metrics suggest there is still further downside from current levels in trade weighted terms before the current deprecation cycle completes.’
Pound Sterling to New Zealand Dollar (GBP/NZD) Conversion Rate Predicted to Edge Higher ahead of US Data
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate edged fractionally higher by around 0.1% on Friday morning.
The New Zealand Dollar is trending higher versus its Australian counterpart thanks to US Dollar weakness and predictions of delays to Federal Reserve rate hikes. The ‘Kiwi’ (NZD) also found support in response to positive domestic data which showed the trade deficit narrowed beyond expectations.
Also aiding demand for the New Zealand Dollar are predictions that the Reserve Bank of New Zealand (RBNZ) will avoid cutting the benchmark interest rate during the next policy meeting. This is because low unemployment and positive wage growth are expected to boost economic activity, even against the backdrop of falling dairy prices.
US economic data, due for publication this afternoon, has the potential to provoke changes for both the New Zealand Dollar and the Australian Dollar.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dropped to a low of 2.0784 during Friday’s European session.
Pound Sterling (GBP) Exchange Rate Forecast: ‘Brexit’ Fears to Continue to Dominate Trader Focus
Although the British asset has made fractional gains thanks to consolidation trading, the long-period of political uncertainty ahead could see the Pound weaken further, hitting fresh record-lows versus its major peers.
Such is the significance of the EU referendum that domestic data is unlikely to be hugely impactful. With that being said, next Thursday’s Services PMI should be significant given that the services sector accounts for the largest portion of British Gross Domestic Product.
For those invested in the Australian Dollar and New Zealand Dollar, movement will likely be dictated by changes in market sentiment and in response to US data results.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending within the range of 1.9261 to 1.9448.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was reminding within the range of 2.0623 to 2.0784 during Friday’s European session.
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