The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has reversed on yesterday’s performance, seeing the Pound (GBP) post minor gains against the ‘Aussie’ (AUD).
Federal Reserve Holds Key to Australian Dollar to Pound Sterling (AUD/GBP) Exchange Rate Performance in Days to Come
The Pound Sterling (GBP) has gained by 0.3% against the Australian Dollar (GBP/AUD) today, after Federal Reserve Bank of Atlanta President Dennis Lockhart said that ‘It would take a significant deterioration in the [US economic] data to convince him not to move in September’.
The news saw the ‘Aussie’ (AUD) decline significantly today, as any interest rate increase for the US Dollar (USD) will negatively impact the Australian Dollar’s performance, given that its commodities are priced in US Dollars.
The Pound has seen an otherwise middling day, trending in a narrow range against many currencies, and gaining slightly against the Euro (GBP/EUR) and the Swiss Franc (GBP/CHF) by 0.3%.
Earlier…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has declined sharply over yesterday’s gains for the Pound, following the Reserve Bank of Australia’s (RBA) decision to freeze the Australian interest rate at 2%.
RBA Interest Rate Announcement Sees Australian Dollar (AUD) Exchange Rate Rise Across the Board
The Australian Dollar (AUD) has soared by 1.5% today against the Pound Sterling (AUD/GBP), the Chinese Yuan (AUD/CNY) and the US Dollar (AUD/USD), and has also had a significant advantage of more than 1% against the Canadian Dollar (AUD/CAD), the Euro (AUD/EUR) and the New Zealand Dollar (AUD/NZD). This comes after RBA Governor Glenn Stevens announced that the Australian interest rate would remain at 2% for the third month in a row, which triggered optimistic speculation that no further cuts to the cash rate would take place this year.
However, the Bank of England (BoE) Monetary Policy Committee (MPC) is meeting this Thursday, and if they indicate that a UK interest rate hike is possible before the end of the year, the Pound Sterling (GBP) may bounce back against the ‘Aussie’.
Earlier…
The Pound Sterling to Australian Dollar exchange rate (GBP/AUD) has risen today, following the release of better than forecast growth in the UK July Manufacturing PMI figures.
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate News: Pound Sterling sees Significant Gains against ‘Aussie’ and Others
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate rose by 0.3% today, after the UK July Manufacturing PMI figure exceeded expectations by increasing to 51.9, small growth, but nonetheless an improvement over last month’s figure of 51.4. The Pound rose against the Canadian Dollar (GBP/CAD) by 0.5%, the South African Rand (GBP/ZAR) by 1%, and recorded a bullish gain of 3.4% against the unstable Russian Ruble (GBP/RUB).
The Pound saw mixed results last week as a result of both positive and negative figures for the UK economy, but today’s response has put the Pound back on a favourable footing against most of the global currencies.
Australian Dollar to Pound Sterling (AUD/GBP) Exchange Rate sees ‘Aussie’ Decline after Chinese Contraction
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate fell by -0.3% today after UK PMI data showed growth, while the ‘Aussie’ was hit by negative results in the Chinese manufacturing sector. The Australian Dollar has gained against the beleaguered Canadian Dollar (AUD/CAD) by 0.5%, but has otherwise fallen against its rivals, trending in a narrow range against the Euro (AUD/EUR), the US Dollar (AUD/USD) and the Chinese Yuan (AUD/CNY).
The economic situation in China has been injurious to the ‘Aussie’; negative results for the July Chinese Manufacturing PMI and Caixin PMI Manufacturing data showed a borderline contraction of 50.0 for the former measure and a further contraction from 48.2 down to 47.8 for the latter. As further evidence of the Chinese ‘slowdown’, this has sparked fears over reduced demand for Australia’s mining exports as China is Australia’s largest export partner. A failure to close the Trans Pacific-Partnership (TPP) deal over the weekend has further contributed to the decline of the Australian Dollar.
Pound Sterling to Australian Dollar Exchange Rate Forecast: BoE and RBA Decisions may Cause Major GBP/AUD Uptrend
The Pound Sterling (GBP) seems set to gain significantly over the Australian Dollar (AUD) this week; while the Bank of England (BoE) is unlikely to raise the UK interest rate at its meeting this Thursday, any hints that a rate hike is due later this year will likely trigger a boost in the Pound’s performance against other currencies.
By contrast, the Reserve Bank of Australia (RBA) is meeting on Tuesday, and they seem highly unlikely to raise the interest rate any time soon. Speculation has actually set the RBA to lower the interest rate from 2% down to 1.75% due to the lacklustre state of the Australian economy; while this would encourage growth in the long term, it would send the ‘Aussie’ plummeting against its competitors in the meantime.
Current GBP, AUD Exchange Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.1414 and the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4671 today.
Comments are closed.