The Pound Sterling softened against the Australian Dollar on Friday following the release of weaker-than-expected UK industrial and manufacturing data.
Earlier in the session the Aussie softened after the Reserve Bank of Australia altered its growth forecasts for the nation’s growth and inflation rates, and said that interest rates will remain at 2.5%.
At its quarterly monetary policy statement the RBA made minor adjustments to its growth and inflation rates. It raised its projections for GDP for June 2014 to 3%, a slight rise from the previous forecast of 2.75% made three months previously.
Regarding inflation the Central Bank reduced its forecast to 2.75% from 3%.
“These minor revisions reflect the net effect of the rise in the exchange rate over recent months – which are expected, at the margin, to restrain exports and boost imports over the next two years – and a slightly stronger outlook for consumption and dwelling investment over the coming year,” the RBA said.
The Pound to Australian Dollar exchange rate is trading in the region of 1.8075
The Pound then softened against the Australian Dollar after data released out of the UK showed that Industrial and Manufacturing production in March softened. Month on month industrial production fell by -0.1% and manufacturing eased to 0.5%.
Against the Euro the Australian Dollar edged higher after European Central Bank President Mario Draghi said that the Central Bank’s policy makers were feeling comfortable with introducing new monetary easing measures at next month’s policy meeting if inflation in the Eurozone remains weak.
Against the US Dollar the ‘Aussie’ weakened following the release of data yesterday which showed that the number of US citizens claiming unemployment benefits fell by 26,000 to 319,000 from the previous week’s revised total of 345,000.
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,0.9364 ,
Australian Dollar,,Pound Sterling,0.5526 ,
Australian Dollar,,Euro,0.6770 ,
Australian Dollar,,New Zealand Dollar,1.0827 ,
US Dollar,, Australian Dollar ,1.0680 ,
Pound Sterling,, Australian Dollar ,1.8075 ,
Euro,, Australian Dollar ,1.4769 ,
New Zealand Dollar,, Australian Dollar ,0.9242 ,
[/table]
Comments are closed.