Although the Pound remained largely supported against its peers over the weekend as several of last week’s UK reports exceeded estimates and Bank of England officials signalled that the nation was experiencing a stronger-than-expected economic recovery, the GBP/AUD pairing slipped during the Australasian session.
The Australian Dollar was trading in the region of 0.5834 against the British Pound as of 10:15 am GMT
While Thursday’s disappointing UK retail sales report did weigh on the Pound, the British currency softened against its Australian counterpart as the ‘Aussie’ broadly strengthened in response to developments in China.
As China is Australia’s main trading partner, news that China’s leaders have outlined the most significant fiscal reforms for twenty years ensured that the ‘Aussie’ adopted a bullish relationship with several of its rivals.
According to currency strategist Hideki Shibata; ‘I’m relatively bullish on the Australian Dollar. It’s positive for the Aussie that concern about China is easing’.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate hit a high of 0.5848
The ‘Aussie’ was also supported as the odds of the Reserve Bank of Australia cutting interest rates before April fell below 25 per cent.
Over three-quarters of industry experts are now foreseeing that the RBA will raise the official cash rate from the record low 2.5 per cent by next week.
The GBP/AUD pairing remained weaker as Rightmove house price data showed that UK house prices dropped by 2.4 per cent in November, month-on-month, following an increase of 2.8 per cent in October. Prices were still up 4.0 per cent on the year.
The RBA is due to publish minutes from its latest policy meeting at 00:30 GMT. Any hints regarding rate increases could cause ‘Aussie’ movement, as could any references to the economic dangers of a strong local currency.
Current Australian Dollar Exchange (AUD) Rates
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The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9411 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6963 >
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5834 >
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1224 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0626 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4359 <
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.7149 <
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8900 >
Correct as of 10:15 am GMT
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