After the People’s Bank of China refrained from selling repurchase agreements, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate dived by around -0.57%. Meanwhile, the Pound is experiencing changes subject to foreign currency movement due to a lack of significant domestic data.
The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 1.8388.
After the PBOC opted to loosen monetary policy further, the Australian Dollar has recovered from a bearish run. The decision to refrain from buying repurchase agreements for the first time since July, coupled with the recent cut to interest rates, has fuelled anxieties that China is headed for the slowest yearly economic expansion since 1990.
Yesterday…
After British Gross Domestic Product Data met with the market consensus, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate strengthened by around 0.65%. The Australian Dollar, meanwhile, is trending lower against all of its major peers as a result of disappointing data and falling iron ore prices.
The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 1.8484.
Pound Sterling (GBP) Gradually Gains on GDP
Wednesday’s British data has produced mixed results thus far, but the most significant publication met with expectations which allowed Sterling to gradually strengthen against the majority of its most traded currency rivals. The preliminary figure for the third-quarter UK Gross Domestic Product saw a yearly growth of 3.0%, in line with economists’ forecasts.
However, the Pound’s gains are slow because imports and exports data indicated future trade balance issues. Exports failed to meet with the median market forecast of a rise from -0.4% to -0.1%, with the actual result equalling the previous figure of -0.4%. Imports exceeded the market consensus of a rise from -0.3% to 0.7%, with the actual result reaching 1.4%.
The Pound Sterling to Australian Dollar exchange rate has dropped to a low today of 1.8338.
Australian Dollar (AUD) Declines on Iron Ore Glut
Iron ore prices have been slashed once again, causing the Australian Dollar to soften across the board. ‘The AUD sits squarely at the bottom of the G10 pack in the past 24 hours and heading into the NY close, with a fresh slide in iron ore prices, now to below $70 for the first time since June 2009, adding pressure,’ said Ray Attrill, global co-head of FX strategy at National Australia Bank.
Further ‘Aussie’ (AUD) declination can be attributed to domestic data printing below expectations. Construction Work Done declined beyond the market consensus of a drop from -1.2% to -1.9%, with the actual data falling to -2.2%.
Pound Sterling to Australian Dollar (GBP/AUD) Forecast to Strengthen
With pressure on the Australian Dollar mounting due to falling iron ore prices, the GBP/AUD exchange rate is likely to strengthen. However, it is possible that the Pound could soften if Reported Sales data prints negatively.
The Pound Sterling to Australian Dollar exchange rate has reached a high today of 1.8511.
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,0.8533,
Australian Dollar,,Euro,0.6823,
Australian Dollar,,Pound,0.5403,
Australian Dollar,,New Zealand Dollar,1.0829,
US Dollar,,Australian Dollar,1.1714,
Euro,,Australian Dollar,1.4650,
Pound Sterling,,Australian Dollar,1.8492,
New Zealand Dollar,,Australian Dollar,0.9229,
[/table]
