UPDATE
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending within a narrow range on Tuesday morning, whilst the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate softened by around -0.40%.
As traders await British finances data, which should give a good indication of the impact of a Conservative government in its infancy on the UK economy, the Pound is generally holding steady versus its major peers.
The Australian Dollar is holding a weak position against its currency rivals thanks to minutes from the Reserve Bank of Australia’s (RBA) most recent policy meeting. The minutes indicated that policymakers were willing to ease policy further in order to stimulate economic growth and devalue the currency.
Despite the fact that commodity prices have weakened considerably amid the prospect of a slowdown in China and Federal Reserve rate hikes, the New Zealand Dollar gained versus many of its currency competitors. The appreciation can be linked to the fact that RBA policymakers hinted at a rate hike, which means that the Reserve Bank of New Zealand (RBNZ) can cut and still have a higher rate than its neighbour.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 2.1134.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.3568.
Yesterday…
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Decline on Sterling Overvaluation
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate softened by around -0.31% on Monday morning.
Having rallied significantly over the course of last week after hawkish sentiment from Bank of England (BoE) officials and positive domestic data results, the Pound softened on Monday. Last week’s rally has caused traders concern that Sterling overvaluation will weigh on policy decisions. In addition to worries regarding overvaluation, the Pound declined in response to mixed results from British housing data. On the year, July’s Rightmove House Prices increased by 5.1%. However, house prices only grew by 0.1% on the month in July which was significantly lower than the previous month’s 3.0% growth.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 2.1092.
Despite the fact that gold prices have dropped significantly, the Australian Dollar strengthened versus many of its currency competitors. The appreciation is mainly the result of improving market sentiment amid easing tensions regarding Greece. Additionally, the ‘Aussie’ (AUD) advanced in response to positive data out of China which showed New Yuan Loans bettered estimates in June. As well as improving market sentiment and positive data out of China, the South Pacific asset gained as thanks to rising iron ore prices.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending within the range of 2.1080 to 2.1271 during Monday’s European session.
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Dive after New Zealand’s Services Improve
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate plummeted by around -1.00% on Monday morning.
In response to the UK’s house price data, Rightmove director and housing market analyst Miles Shipside said: ‘Stretched affordability is acute in nearly all market sectors in London, but the lower-end sector with up to two bedrooms has high demand from first-time buyers, down-sizers and investors. It tends to be solid and consistent demand rather than the ebbs and flows of the upper-end internationally influenced market which is more affected by wider political and economic force.’
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.3665.
Alike its Oceanic neighbour, the New Zealand Dollar strengthened in response to improving market sentiment and positive Chinese ecostats. Additional ‘Kiwi’ (NZD) gains can be linked to June’s Performance of Services Index which gained from 58.1 to 58.2. The New Zealand Dollar advanced versus all of its major peers during Monday’s European session despite continued bearish dairy prices.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending in the range of 2.3640 to 2.3965 during Monday’s European session.
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