The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is trending within a tight range on Friday morning.
After British economic data printed positively on Friday, the Pound advanced against many of its major peers. Consumer Confidence eclipsed the forecast figure as low oil prices acted like a tax cut.
The Australian Dollar, meanwhile, edged higher versus most of its major peers after gold prices rebounded. The gold advance can be attributed to a slightly softer US Dollar and demand from Asia ahead of the Chinese New Year.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 1.9386.
Yesterday…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate rallied by around 1.07% on Thursday afternoon.
After British economic data produced mixed results which err towards the negative, the Pound softened versus the majority of its most traded currency rivals.
The Australian Dollar, meanwhile, softened thanks to dampened market sentiment amid low oil prices. With the US Dollar strength seeing demand for gold cool, and with speculation that the Reserve Bank of Australia (RBA) will cut rates in their next policy meeting, the ‘Aussie’ (AUD) dived versus nearly all of its major peers.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 1.9390.
Pound Sterling (GBP) Exchange Rate Softens on House Prices
After British data printed relatively poorly on Thursday, the Pound softened against most of its major peers. Nationwide House Prices declined from 7.2% to 6.8% on a yearly basis, although monthly prices rose from 0.2% to 0.3% in January.
Property commentator Henry Pryor said; ‘The heat is clearly coming out of the market but it is too early to tell what effect the stamp duty changes announced in the Autumn Statement may have.’
Additional Sterling losses can be attributed to CBI Reported Sales data which declined from 61 to 39 in January.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate dropped to a low today of 1.9156.
Australian Dollar (AUD) Exchange Rate Dives on Commodities
After the Federal Reserve hinted that they would raise rates in 2015, the US Dollar surge caused a considerable ‘Aussie’ declination. The US Dollar strength also contributed to lower gold prices. In addition, market sentiment dampened after oil prices resumed declination amid an expanding supply glut.
Another issue weighing on the South Pacific asset is speculation that the RBA will cut rates in their next policy meeting due to low inflation. ‘The key driver for these central banks is increasing downside risks to global inflation and growth,’ said Su-Lin Ong, head of Australian economic and fixed-income strategy at Royal Bank of Canada in Sydney. ‘Canada talked about an insurance cut and pointed at energy, you substitute that in Australia for iron ore and dairy in New Zealand. It’s no coincidence that the commodity nations’ central banks are shifting rapidly in policy assessments.’
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Hold Gains
With several factors adding downward pressure on the ‘Aussie’, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is likely to hold gains for the remainder of Thursday.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate reached a high today of 1.9469.
