The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate strengthened by around 0.16% on Friday, primarily due to trader risk aversion strategies amid concerns over Russia’s financial crisis.
The Pound, meanwhile, continues to trend higher versus the majority of its peers despite less-than-ideal consumer confidence.
The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 1.9207.
Yesterday… The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate softened by around -0.43% on Thursday. This is as a result of a surge in demand for higher-yielding assets following the Federal Reserve’s decision to delay a benchmark rate hike until at least mid-2015. The Pound, meanwhile, strengthened against many of its currency competitors after seasonal spending boosted British retail sales.
The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 1.9081.
Pound Sterling Exchange Rate Gains on UK Retail Sales
After Thursday’s domestic data printed positively, the Pound strengthened against the majority of its currency counterparts. Retail Sales saw a yearly increase of 6.9% in November, eclipsing expectations of a drop from 4.9% to 4.5%.
‘These numbers verify the shift in spending patterns happening in the final quarter of the year. Black Friday led to unprecedented demand,’ said Natalie Berg from Planet Retail. ‘What we don’t know is to what extent did this simply bring spending forward,’ she continued. ‘I suspect it slowed in the first couple of weeks in December.’
The Pound Sterling to Australian Dollar exchange rate dropped to a low today of 1.9013.
Australian Dollar Exchange Rate Rallies on Fed Rate Decision
With the Federal Reserve delaying an interest rate hike until at least mid-2015, there has been a surge of demand for higher-yielding assets. The Australian Dollar strengthened against the majority of its currency rivals.
Compounding the ‘Aussie’ (AUD) gains has been reasonably positive domestic data. Reserve Bank of Australia FX Government Transactions increased from -487 million to -381 million. RBA FX Other Transactions declined from 114 million to 49 million, and RBA Foreign Exchange Transactions dropped from 389 million to 337 million.
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Recover
Although demand for high-yielding assets has gained significantly, the very positive surge in British retail sales should see improved sentiment towards the British asset.
The Pound Sterling to Australian Dollar exchange rate advanced to a high today of 1.9193.
