The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate edged higher by around 0.15% on Friday morning.
This can be attributed to Australian retail sales which declined beyond expectations. A large declination has been avoided thus far, however, thanks to rising oil and gold prices. The Pound Sterling, meanwhile, is generally holding its position ahead of trade balance data.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 1.8618.
Previously…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in a narrow tight on Wednesday.
This is as a result of a fractional improvement in the British Retail Consortium’s (BRC) Shop Price Index, allowing the Pound to rebound from a sustained bearish run. Positive results from all British economic data publications on Wednesday supported a Sterling rebound. The Australian Dollar, meanwhile, is holding steady after gold halted a three-day rally whilst traders await the Federal Reserve minutes, due for publication later on Wednesday evening.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 1.8732.
Pound Sterling (GBP) Exchange Rate Static on British Data
In the wake of domestic data showing an improvement in shop prices, the Pound recovered from a sustained bearish run. The BRC Shop Price Index eclipsed the median market forecast of an increase from -1.9% to -1.8% by climbing to -1.7%. But with prices still in negative territory deflation concerns have not been alleviated.
BRC director general, Helen Dickinson, said: ‘Prices in Britain’s shops have continued to tumble, this month by -1.7 per cent. This is the twentieth consecutive month that customers have been able to go to the shops, fill their baskets and pay less for their goods than the year before. This is an incredible run of good fortune for consumers and in the medium term at least looks set to continue. A number of key commodities in the retail supply chain (in particular, oil) have fallen dramatically recently and the impact of these falls will continue to make its way through to shop prices for some time to come.’
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate dropped to a low today of 1.8713.
Australian Dollar (AUD) Exchange Rate Static as Bullish Gold Run Stalls
As traders await minutes from the latest Federal Open Market Committee (FOMC) meeting, gold prices are holding steady. This, in turn, caused the ‘Aussie’ (AUD) exchange rate to halt gains despite an improvement in Australia’s Performance of Service Index, which increased from 43.8 to 47.5.
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Hold Steady
Given that market focus is set firmly on the FOMC minutes, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is unlikely to endure significant volatility. This is especially true considering the lack of influential domestic data to provoke changes.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate reached a high today of 1.8758.
