The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate advanced by around 0.95% on Monday afternoon.
After British economic data produced a mixed-bag of results, the Pound is generally holding steady versus many of its major peers. A fractional appreciation can be attributed to ongoing positive sentiment following hawkish comments from Bank of England (BoE) Governor Mark Carney on Friday.
The Australian Dollar, meanwhile, softened versus many of its most traded currency rivals as a result of damp market sentiment in response to falling oil prices. The ‘Aussie’ (AUD) declination was compounded by heightened speculation that the Reserve Bank of Australia (RBA) will cut rates further in April.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 1.9364.
Pound Sterling (GBP) Exchange Rate Holds Gains despite Mixed Data
Monday’s British economic data produced mixed data. This has seen the Pound hold gains made from Carney’s assurance that UK inflation will rise which is in contrast to previous comments made by the Chief Economist Andrew Haldane.
February’s UK Net Consumer Credit was forecast to rise from 0.8 billion to 0.9 billion, but the actual result only reached 0.7 billion. Net Lending Securities on Dwellings advanced beyond the median market forecast of 1.6 billion in February, with the actual result increasing to 1.7 billion. Additionally, February’s Mortgage Approvals came in at 61, 800 which bettered the market consensus of 61,500.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has dropped to a low of 1.9187 today.
Australian Dollar (AUD) Exchange Rate Softens on RBA Rate Cut Speculation
With market sentiment significantly dampened amid unknowns in Europe and with crude prices continuing to trade below $50 a barrel, the risk-correlated ‘Aussie’ softened versus many of its major peers.
Additional declination can be attributed to speculation that the RBA will be forced to cut rates in the meeting just after Easter amid ongoing concern that the South Pacific asset is critically overvalued. ‘Speculation that the RBA might be going in April instead of May … that’s probably helped the Aussie move a tiny bit lower,’ stated RBC Capital Markets currency strategist Michael Turner.
‘The combination of oversupply and the weakening building sector in China, Australia’s largest trading partner, is leaning on the Australian Dollar,’ said OANDA Asia Pacific senior trader Stephen Innes.
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Hold Gains
Given that sentiment towards the respective central banks is so contrasting, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is likely to hold gains for the remainder of Monday’s European session.
Tuesday ought to see GBP/AUD volatility given that there will be several domestic data publications pertaining to both nations, although market sentiment is still likely to dominate trade.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate climbed to a high of 1.9314 today.
