Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Strengthen on British Mortgages Data
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate advanced by around 1.1% on Friday afternoon.
After British economic data produced a positive result, the Pound advanced versus many of its peers. BBA Loans for House Purchase was forecast to improve from 42876 to 43300 in June, but the actual result reached 44488. The resultant upswing for the Pound has helped the currency recover much of the losses accrued on Thursday after UK retail sales failed to meet with expected growth.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 2.1315.
The Australian Dollar, meanwhile, dived versus its major rivals in response to disappointing data out of China. The preliminary figure for the Caixin China Manufacturing PMI was forecast to edge higher from 49.4 to 49.7, but July’s actual result fell to 48.2. The contracting Chinese manufacturing output also weighed on market sentiment amid fears regarding China’s economic slowdown. Also causing headwinds for the ‘Aussie’ (AUD) is the slump in gold and iron ore prices.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending within the range of 2.1086 to 2.1337 during Friday’s European session.
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Strengthen as Dairy Prices Continue to Fall
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate advanced by around 0.5% on Friday afternoon.
In response to the BBA Loans for House Purchase data, Richard Woolhouse, Chief Economist at the BBA, said; ‘The housing market is beginning to hot up again, as we’ve seen a pick-up in the number of mortgage approvals for the last month. Interestingly, we’ve also seen an increase in the number of people remortgaging, which could be down to savvy borrowers taking advantage of competitive deals on fixed rate mortgages ahead of a possible rise in interest rates.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.3559.
Similarly to its Oceanic neighbour, the New Zealand Dollar declined in response to contracting factory output from China. Additional losses can be attributed to bearish commodities, with particular reference to the depreciation in dairy prices. The ‘Kiwi’ (NZD) avoided a larger downtrend, however, with traders predicting that the Reserve Bank of New Zealand (RBNZ) will hold the cash rate for the remainder of 2015.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending within the range of 2.3423 to 2.3619 during Friday’s European session.
Pound Sterling Exchange Rate Forecast to Hold Gains against the Australian Dollar (GBP/AUD) and New Zealand Dollar (GBP/NZD) on Bearish Commodities
Over the course of the coming week, the South Pacific currencies are likely to hold a weak position given the ongoing depreciation in the commodities market. In addition, the slowdown in China is weighing on market sentiment which will see dampened demand for high-yielding assets. The Pound, meanwhile, is likely to fluctuate depending on domestic data as the BoE will closely scrutinise results to analyse the best time for a benchmark rate increase.
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