The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate advanced by around 0.44% on Friday morning.
A mixed-bag of domestic data allowed the Pound to strengthen versus most of its major peers on Friday as the positives outweighed the negatives, with consumer confidence and mortgage approvals eclipsing estimates.
The Australian Dollar, meanwhile, softened versus the majority of its most traded peers thanks to low iron ore prices as demand from China cools.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 1.9461.
Pound Sterling (GBP) Exchange Rate Ticks Higher on Mixed Data
The Sterling advance was initiated by GfK Consumer Confidence bettering the median market forecast of a rise from -4 to -2, with the actual result climbing to 1. ‘Even though the economic data in UK points to growth, investors are wary because there is political uncertainty on the horizon,’ said Marshall Gittler, foreign exchange strategist.
Additionally, UK Mortgage Approvals eclipsed the market consensus of 59,000 new approvals, with the actual result reaching 60,300. The positives from consumer confidence and mortgage approvals outweighed negative results from Net Consumer Credit and Net Lending Securities on Dwellings, which both declined from previous figures.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has fallen to a low today of 1.9334.
Australian Dollar (AUD) Exchange Rate Dives despite Positive Data
Although Australian economic data produced relatively positive results on Friday morning, the ‘Aussie’ (AUD) softened versus the majority of its most traded currency rivals. This can be attributed to yet more declination in the price of iron ore – Australia’s main commodity.
‘If we see little growth in China’s steel demand and output this year, it is difficult to see increased iron ore sales,’ said Helen Henton, commodities expert. ‘However, it will be the more marginal, higher-cost producers that are pushed out, rather than the major producers, as the latter have drastically reduced their costs.’
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Extend Gains
With market sentiment dampened amid low commodities prices, the Pound Sterling to Australian Dollar (GBP/AUD) exchange has the potential to extend the advance beyond the current 12-month high.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate advanced to a high today of 1.9493.
