The Pound to Australian Dollar (GBP/AUD) exchange rate plummeted during Australasian trading as the ‘Aussie’ was supported by surprisingly upbeat news from China, Australia’s main export partner.
While economists had been expecting China’s HSBC/Markit Manufacturing Purchasing Managers Index to come in at 49.7 in June, following a reading of 49.4 in May, the gauge actually leapt to a seven-month high of 50.8 this month.
This increase pushed the measure above the 50 mark separating growth from the contraction and marked the first positive improvement in operating conditions for half a year.
The Chinese Manufacturing Output Index also came in at a seven-month high with a reading of 51.8.
China economist Hongbin Qu said this of the report; ‘The improvement was broad-based with both domestic orders and external demand sub-indices in expansionary territory. Inventory reduction quickened, and the employment sub-index also showed signs of stabilisation.’
The report was also a sign that the stimulus measures adopted by Chinese policy makers are having the desired affect and go some way to reducing concerns regarding a slowdown in the world’s second largest economy.
Some industry experts believe that Beijing will introduce even more growth stabilising measures over the next few months.
As China and Australia have such strong trade links, the report helped the AUD/USD pairing jump by 0.50 per cent overnight and pushed the Australian Dollar to its strongest level against the US Dollar since early April.
The Australian Dollar also achieved a high of 1.8137 against the Pound and pushed higher against the Euro.
There was no notable Australian economic data scheduled for publication during Monday’s Australasian session.
As UK data releases are also thin on the ground today the Pound to Australian Dollar exchange rate will probably be trading in a narrow range for much of the European session.
Over the next five days the only Australian figures worth noting include tomorrow’s ANZ weekly Roy Morgan Consumer Confidence Index, Wednesday’s Skilled Vacancies report and Thursday’s Job Vacancies data.
Of course Chinese reports, such as the nation’s industrial profits figures, will also be of interest.
News from the UK, including the nation’s Consumer Confidence survey and final first quarter GDP figures, is far more likely to drive movement in the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate.
Updated: 09:45 GMT 24 January 2014
The Pound to Australian Dollar exchange rate struggled throughout Monday as China’s surprisingly upbeat Manufacturing PMI lent commodity-driven and higher risk currencies support.
The GBP/AUD exchange rate extended declines on Tuesday as Australia’s Roy Morgan Weekly Consumer Confidence Index rose from 103.2 in May to 105.7 in the week ending June 22.
Today’s UK BBA Mortgage Approvals report showed that the number of domestic mortgage approvals climbed from a negatively revised 41934 in April to 41757 in May. A reading of 41000 had been anticipated.
As it stands, the Pound to Australian Dollar exchange rate is 0.18% softer. Unless today’s speeches from the Bank of England’s David Miles, Charlie Bean and Mark Carney support the argument for interest rates rising before 2015 the GBP/AUD exchange rate may remain on the back foot for the rest of Wednesday.
Updated: 11:00 GMT 25 June 2014
Pound to Australian Dollar (GBP/AUD) Exchange Rate Firms Slightly
The Pound to Australian Dollar exchange rate was slightly stronger on Wednesday as a fresh bout of Ukraine-inspired risk aversion pushed investors away from currencies like the ‘Aussie’.
The appeal of the Pound was still reduced by the lowered odds of a Bank of England rate hike occurring this year, but the British asset was able to pare declines against higher-risk rivals like the New Zealand Dollar and Australian Dollar overnight as the news that a government helicopter had been shot down by Russian rebels in Ukraine put the recently forged truce in jeopardy.
Ukrainian President Petro Poroshenko asserted that his nation’s forces will mobilise without hesitation if the rebels continue to undermine the ceasefire.
Ongoing issues in Iraq are also taking a toll on the Australian Dollar exchange rate.
As the UK’s Confederation of British Industry’s Reported Sales data greatly disappointed expectations, the Pound to Australian Dollar (GBP) exchange rate could soften over the hours ahead.
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, 0.9438,
Australian Dollar,,Euro, 0.6944,
Australian Dollar,,Pound, 0.5544,
Australian Dollar,,New Zealand Dollar, 1.0801,
US Dollar,,Australian Dollar, 1.0597,
Euro,,Australian Dollar, 1.4400,
Pound Sterling,,Australian Dollar, 1.8041,
New Zealand Dollar,,Australian Dollar, 0.9256,
[/table]
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