The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is unlikely to experience any significant movement over the week. This is because trading will be quiet over the Christmas period and the economic calendar is particularly sparse.
As stated by industry expert Boris Schlossberg; ‘It’s been a very choppy consolidative session on the last trading day of the week as many dealing desks have started to close their books for year end and the economic calendar has thinned appreciably.’
A number of factors have contributed to the Australian Dollar’s recent downtrend, but analysts expect the currency’s weakness to benefit the Australian populace in the run up to Christmas.
In the view of Innes Willox of the Australian Industry Group; ‘The Dollar decline is a Christmas bonus for Dollar-exposed industries such as manufacturing and tourism who are now enjoying the Dollar at its lowest level [against the US Dollar] since June 2010. The lower Dollar will also help Australia’s fiscal position by raising the Aussie Dollar value of exports and in so doing offset lower commodity prices to some extent.’
GBP/AUD Exchange Rate to Hold Steady on Monday
A combination of quiet trading over the Christmas period and an absence of domestic data has seen the Pound to Australian Dollar exchange rate trend within a tight range. Movement is likely to be fractional and inconsequential prior to the start of 2015.
The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 1.9187.
Pound Sterling Australian Dollar Exchange Rate Forecast to Fluctuate on Tuesday
A lack of Australian data until late on Tuesday evening is likely to see the ‘Aussie’ (AUD) fluctuate against its major peers. Tuesday evening’s Australian Conference Board Leading Index is the only Australian data publication for the entire week, and therefore may carry more weighting than usual.
For those invested in the Pound, the final figure for the year-on-year third-quarter Gross Domestic Product will be of significance. In addition, Loans for House Purchase has the potential; to spark volatility.
UPDATE
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate softened by around -0.15% on Tuesday, This can be attributed to disappointing British growth data. The Australian Dollar has generally declined against the majority of its most traded rivals, however, after the commodities market continued to decline.
GBP/AUD to Hold Steady on Wednesday
Once again, an absence of domestic data pertaining to the UK and Australia on Wednesday will see little movement for the Pound to Australian Dollar exchange rate. Any changes will be as a result of foreign currency and commodities movement.
Similarly to Wednesday’s economic docket, Thursday’s calendar lacks any Australian or British data. Even less movement is likely as markets will be quiet on Christmas Day.
Pound to Australian Dollar to Trend within Narrow Range before 2015
I am fully aware that I am sounding like a broken record, but Friday’s economic calendar is once again lacking any data pertaining to the UK and Australia. Therefore the Pound Sterling to Australian Dollar exchange rate is likely to trend within a tight range.
At the close of last week, the Pound Sterling to Australian Dollar exchange rate was trending in the region of 1.9215.
