The Pound Sterling (GBP) has declined against the Australian Dollar (GBP/AUD) today, trending in a narrow range. This came about after the last Australian results of the week paid off for the ‘Aussie’ (AUD).
Fizzling end to the Week Tomorrow as Last UK Data Release is Due
The Pound Sterling (GBP) fell against the Australian Dollar (AUD) today owing to the Australian Conference Board Leading Index for July and the monthly Skilled Vacancies figure for August both rising when falls had previously been recorded.
In the future, the only remaining direct release for the pairing is the UK BBA Loans for House Purchases in August. Predictions are for an increase from 46033 to 47000; as this is last relevant GBP/AUD release of the week, any further movement on Friday will be due to external events.
Earlier…
The Pound Sterling (GBP) has risen marginally against the Australian Dollar (GBP/AUD) today, although circumstances have not exactly been conducive for such a positive performance today.
Last Australian results of the Week due Tomorrow, Low-Impact Nature may not shift Current Positioning
The Pound Sterling (GBP) has a single economic release remaining this week; the BBA Loans for House Purchases out on Thursday. Expectations have been positive, and providing the negative opinions caused by today’s expansion of the UK debt subside, it remains a possibility that the Pound will advance further against the ‘Aussie’ (GBP/AUD) then.
For the Australian Dollar (AUD), tomorrow brings the last two planned Australian releases of the week. These are the Australian Conference Board Leading Index for July and the monthly Skilled Vacancies figure for August. No predictions have been made, but as the information is classed as low-impact, it may not actually matter if they post strongly in the positive.
Earlier…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has advanced notably today, and overall Sterling (GBP) has had a positive day of results against its rivals. Meanwhile, the ‘Aussie’ (AUD) has floundered despite Australia recently appointing a new, economy-focused Prime Minister, Malcolm Turnbull.
GBP/AUD Exchange Rate News: Osborne Secures Chinese Investment and Downplays Slowdown Fears
The Pound Sterling (GBP) has risen by 0.4% against the Australian Dollar (GBP/AUD) today, just one of a number of considerable gains for Sterling on a positive start to the week. Other advances for the Pound have included over 0.6% against the South African Rand (GBP/ZAR) and the Singapore Dollar (GBP/SGD), in addition to 0.8% against the New Zealand Dollar (GBP/NZD) and 1.1% against the Hungarian Forint (GBP/HUF). On the other side of the coin, losses of -0.3% against the Swiss Franc (GBP/CHF) and -0.4% against the Indian Rupee (GBP/INR) and the Mexican Peso (GBP/MXN) have been seen today.
The Pound has been supported most strongly today by the news that Chancellor George Osborne has been gathering economic support for the UK during his week-long visit to China. Just days in, the Chancellor has acquired a £2bn investment from China for the development of a nuclear power station at Hinkley Point C, a project that had previously stalled due to a lack of funding. Osborne also had an optimistic outlook for China’s economic future, declaring that ‘China is going through a very necessary and challenging transformation which is essential so that China’s economy can go on creating good careers and higher living standards for 1.3 billion people.’ Osborne added; ‘Carry on with the reform, carry on with the change you’re making…it’s a massive source of global growth going forward’.
‘Aussie’ has little to Celebrate despite New PM Turnbull Promising Sweeping Economic Reforms
The Australian Dollar (AUD) has had a virtually opposite performance to the Pound (GBP) today, falling against all but the New Zealand Dollar (AUD/NZD), against which it has risen by 0.5%. In addition to a decline of -0.3% against the Pound Sterling (AUD/GBP), the Australian Dollar has dropped by over -0.3% against the Canadian Dollar (AUD/CAD), the Euro (AUD/EUR) and the US Dollar (AUD/USD).
In addition to a slump in the price of iron ore registered since the beginning of the month, the ‘Aussie’ has been harmed recently by a report from the National Australia Bank (NAB), which has reported foreign investors as having ‘a uniformly negative view on Australia’s prospects’. NAB Chief Economist Ivan Calhoun bleakly admitted that ‘I have never experienced such overwhelming negativity on the outlook of the Australian economy and Australian Dollar is all my years marketing the Australian economy offshore’.
This pessimistic outlook has likely come as a shock to domestic investors in the Australian economy, who have otherwise been bolstered by new Australian PM Turnbull stating that; ‘We have to ensure that we are more productive, so that we have higher living standards, that we can maintain this high wage, generous social welfare net, first world economy. That’s going to require a lot of reform, a lot of leadership, a lot of confidence, a lot of optimism, a lot of innovation. That’s what is on my agenda’.
GBP/AUD Exchange Rate Forecast: Scarcity of Australian Results means GBP may continue to Dominate This Week
The Pound Sterling’s (GBP) biggest data day this week comes tomorrow, with the release of the UK Public Finances figures for August, among other related results. Unfortunately for Sterling, estimates are for a £8.8bn increase in the Public Sector Net Borrowing result. The Australian Dollar (AUD) also has news to watch out for tomorrow, although the 8% increase in the annual Q2 House Price Index is one of the last significant Australian releases due this week.
Current GBP, AUD Exchange Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.1695 and the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4611 today.
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