The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has risen today and elsewhere, Sterling (GBP) has managed to make mostly positive progress against its rivals. By contrast, the ‘Aussie’ (AUD) has had little to celebrate, dropping across the board.
GBP/AUD Exchange Rate News: Day’s only UK Data Proves Favourable to UK Currency
While the Pound Sterling (GBP) has been in some difficulty this week from a lack of decisiveness stemming from weak economic publications, both yesterday’s and today’s releases have supported Sterling, more so than usual as growth has been recorded against expectations. The UK Construction PMI for September announced today has exceeded expectations by a fair margin: a fractional rise from 57.3 points to 57.5 had been predicted, but the reality saw a confidence-boosting 59.9 printing. This has echoed yesterday’s Manufacturing PMI for the same month, and bolstered confidence in the Pound to no end.
Sterling’s greatest gains today have been by over 0.6% against the US Dollar (GBP/USD), the Australian Dollar (GBP/AUD) and the Singapore Dollar (GBP/SGD), while a superior 1.5% against the Russian Ruble (GBP/RUB) has also been recorded. On the other side of the equation, the pound has dropped by -0.4% against the Euro (GBP/EUR), -0.5% against the Swiss Franc (GBP/CHF) and -0.7% against the Norwegian Krone (GBP/NOK).
‘Aussie’ has Rough Day in AUD/GBP Exchange Rate Pairing as IMF Offers Australia Hobson’s Choice
The Australian Dollar (AUD) has had a far more consistent showing against its rivals today, although unfortunately this has been for the wrong reasons. The ‘Aussie’ (AUD) has fallen against most of its rivals, seeing the most notable declines being by -0.3% against the Canadian Dollar (AUD/CAD), -0.5% against the Pound Sterling (AUD/GBP), -0.6% against the New Zealand Dollar (AUD/NZD) and -0.8% against the Euro (AUD/EUR).
One of the main reasons for the unfavourable position the ‘Aussie’ finds itself in today has been a recent report from the International Monetary Fund (IMF) that has analysed Australia’s current economic situation and additionally provided a forecast.
For the antipodean nation, the diagnosis is not a comfortable one to hear, as the IMF has estimated that Australia’s mining boom is well and truly approaching its end, therefore money now needs to be found or borrowed to invest heavily in alternative industries to fill the mining vacuum. The prospect of being forced to expand Australia’s debt levels as a consequence is not one to be held lightly by Australia’s Department of Finance, and this tough decision has been reflected in the Australian Dollar’s decline today.
GBP/AUD Exchange Rate Forecast: ‘Battle of the Banks’ Due Next Week
In the week to come, the Pound (GBP) and the ‘Aussie’ (AUD) are about even when it comes to results, therefore it will be quality instead of quantity that decides the winner. Most notably, the Reserve Bank of Australia (RBA) Interest Rate Decision will be announced on Tuesday, the Bank of England (BoE) counterpart is due on Thursday. No change is predicted for either rate, but the BoE minutes are likely to be the biggest influence, as they may hold clues as to how soon the BoE is thinking of raising the UK interest rate.
Current GBP, AUD Exchange Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.1617 and the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4628 today.
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