The GBP to AUD Exchange Rate was holding steady above the 1.80 mark on Monday due to a lack of economic data releases and as investors look ahead to the evening’s US federal budget statement.
Sterling is likely to see little movement throughout the session and Tuesday is also devoid of any domestic economic data releases.
Instead it will be at the mercy of events in the Eurozone and USA.
Wednesday is this week’s big day for the Pound, due to the release of the latest inflation and unemployment data.
Investors are expecting another solid round of positive reports, and as such the Pound is trading close to multi-month and multi-year highs against the Euro and US Dollar.
The ‘Aussie’ meanwhile saw little movement despite the release of an improved business confidence report from National Australia Bank.
The Bank’s business confidence index ticked higher to 6 in April from the 4 recorded in March.
The evenings US budget statement could spur the currency to make movement.
“Significant spending cuts would likely create headwinds for the domestic US economy, and raise the likelihood that the RBA will refrain from raising rates, which in turn would be a negative for the currency.
‘Tomorrow’s domestic housing finance and residential property price index are unlikely to affect the currency. Those figures may also fail to stir volatility for the Aussie, unless we see a significant deviation from expectations,” said market analyst David de Ferranti.
Comments made by Chinese President Xi Jinping put some pressure on the ‘Aussie’ after he said that the nation needs to adapt to a new ‘normal’ pace of economic growth and remain cool minded as the economy slows.
Economists are forecasting the Chinese economy will see its slowest rate of expansion since the 1990’s.
China is Australia’s largest trading partner.
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,0.9368 ,
Australian Dollar,,Pound Sterling,0.5555 ,
Australian Dollar,,Euro,0.6807 ,
Australian Dollar,,New Zealand Dollar,1.0866 ,
US Dollar,, Australian Dollar ,1.0677 ,
Pound Sterling,, Australian Dollar ,1.8014 ,
Euro,, Australian Dollar ,1.4691 ,
New Zealand Dollar,, Australian Dollar ,0.9213 ,
[/table]
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