Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Set to End the Week Trending Lower
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate fell by over 0.5% on Friday to hit a low of 1.8934.
During the Australasian session the ‘Aussie’ experienced volatility as a result of comments issued by RBA Governor Glenn Stevens.
Stevens asserted that he expects the Australian Dollar to depreciate in the months ahead, and the ‘Aussie’ softened accordingly.
However, GBP/AUD declines were limited as Stevens also eased concerns regarding the RBA cutting interest rates early next year.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate extended declines as a result of largely on-target data for China and the UK’s poor Construction Output figures.
Earlier…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in a weaker position prior to the publication of the UK’s trade balance figures.
GBP/AUD Exchange Rate Sheds 0.2%
Although Australia published mixed economic reports overnight, the Australian Dollar was bolstered by offshore overnight trading and managed to gain against both the Pound and US Dollar.
The GBP/AUD exchange rate hit a low of 1.8812.
Overnight Australia released its Westpac Consumer Confidence Index. The measure of sentiment fell by -5.7% to 91.1 from 96.6.
Later the nation published Australian investment lending and home loans data.
Investment lending increased by 1.0% in October, year-on-year, while home loans climbed by 0.3% – slightly more than the 0.1% gain anticipated.
In the hours ahead, further Pound Sterling to Australian Dollar movement could be inspired by the UK’s trade data.
Earlier…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate prepared to close out the European session trending 0.2% lower than the day’s opening levels as
GBP/AUD Exchange Rate Pares Advance
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate trimmed its earlier advance as trading progressed and markets responded to a range of economic developments, including the UK’s GDP printing at 0.7% and the price of oil falling to a fresh five year low.
Overnight investors will be focusing on the Australian Westpac Consumer Confidence report. As the NAB Business Confidence/Conditions surveys fell short, a decline in Consumer Confidence wouldn’t be well received and the Pound could push higher.
Earlier…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate continued trending in a stronger position on Tuesday in spite of the release of disappointing UK data.
GBP/AUD Exchange Rate Gains as Australian Confidence Declines
Overnight the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate rallied by over 0.4% in response to the news that Australian business confidence fell from 5 to 1 in November.
The drop in business sentiment prompted the National Bank of Australia (who compiled the report) to predict that interest rates will be cut by 25 basis points in March, with another cut following in August. As stated by industry expert Michael Janda; ‘The bank has changed its forecast after much weaker than expected gross domestic product figures for the September quarter and a larger than anticipated slump in Australia’s terms of trade, which compares the prices received for exports with those paid for imports.’
The NAB Business Conditions index also fell in November, dropping to 5 from 13 in October.
Meanwhile, the Roy Morgan Weekly Consumer Confidence index eased from 113.9 to 110.4 in the week ending December 7th.
Further GBP/AUD exchange rate strength was derived from the fact that the British Retail Consortium’s Like-for-Like Sales report showed a 0.9% year-on-year increase in November – stronger than the 0.6% gain anticipated.
UK Data sees GBP/AUD Exchange Rate Pare Advance
However, during the European session the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate eased lower in response to below-forecast UK manufacturing/industrial production figures.
While month-on-month increases of 0.2% had been expected for both manufacturing and industrial production, the former fell by -0.7% and the latter declined by -0.1%.
The year-on-year figures were also below anticipated levels.
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate could recoup lost ground in the hours ahead if the UK’s growth estimate for November impresses.
The figure, due to be published by the National Institute of Economic and Social Research is expected to show a slight softening in growth toward the end of the year.
A surprisingly upbeat result would boost demand for the Pound.
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,0.8296,
Australian Dollar,,Euro,0.6712,
Australian Dollar,,Pound,0.5302,
Australian Dollar,,New Zealand Dollar,1.0805,
US Dollar,,Australian Dollar,1.2051,
Euro,,Australian Dollar,1.4894,
Pound Sterling,,Australian Dollar,1.8857,
New Zealand Dollar,,Australian Dollar,0.9251,
[/table]
