Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rates – ‘Aussie’ strengthens and is forecast to rise until Thursday

Pound to Australian Dollar exchange rate chart

The Australian Dollar strengthened against the Pound and hit a four-week high against the US Dollar on Tuesday after data showed that house prices and business sentiment both climbed.

The ‘Aussie’ climbed after a report released by the Australian statistics bureau showed that house prices in the country surged by 9.3% in the fourth quarter of last year, the biggest increase seen in over three years. The increase was a 3.4% rise compared to the previous quarter.

In Sydney house prices climbed by 4.7%. Perth saw rises of 3.3% and the Australian capital saw prices rise by 3.4%. The data suggests that the country is experiencing a solid recovery after a brief dip. The report also increased speculation that the RBA is done with cutting interest rates for the foreseeable future.

“The strength of the housing market, and in particular investor demand, confirms that low interest rates are working to support the economy and supports our long-held view that the RBA is done cutting rates in this cycle,” said an economist from St. George Bank.

A separate report released by the National Australia Bank also bolstered the currency by showing that business confidence climbed for the first time in four months in January. The business conditions index rose to +4 in January from the +3 seen in December whilst business confidence climbed to +8 from the previous figure of +6.

The ‘Aussie’ is likely to push higher tomorrow if Westpac’s January consumer sentiment index shows improvement but on Thursday the currency is likely to soften if unemployment data shows a rise in the number of Australians out of work as forecast.