Pound To Australian Dollar Exchange Rate Forecast: GBP Slips From Best To 2.01 AUD

Published: 20 Oct 2017 21:24 Forex

pound to Australian Dollar exchange rate forecast

Sterling’s gains on support for the Remain camp last week saw the British pound to Australian dollar rate rally to the best conversion in three months. Where next for GBP/AUD exchange rate in the latest forecasts?

Today's early hours release of the Aussie Building Approvals has seen the pound to Australian dollar exchange rate slump from best conversion levels.

The Australian data release came in above forecast, providing support for the AUD exchange rates.

Risk appetite remained heightened on Tuesday morning, in spite of continued hawkishness from members of the Federal Open Market Committee (FOMC) regarding the possibility of an imminent rate hike.

The day’s stronger-than-expected Australian data continued to bolster demand for the ‘Aussie’ (AUD), encouraging hopes that the Reserve Bank of Australia (RBA) might not cut interest rates sooner rather than later.

Monday's forex markets found the GBP/AUD on the back foot, slipping 0.17pct as sterling faced pressure across the board.

With no key UK data due today, Tuesday's early morning release of the Aussie Building Approvals will provide the next cue in the GBP/AUD pairing.

Although sterling was held back by a generally small amount of UK data, the pound sterling vs Aus dollar rate nonetheless managed to jump on account of the results seen in EU Referendum polls.

Tuesday was the crucial day for the pound sterling exchange rates, when a collection of polling stats showed that the chances of the ‘Remain’ group winning the vote were over 50%, relative to a roughly 42% figure that was recorded for the ‘Out’ campaign.

The Referendum also factored into an intense debate between Bank of England (BoE) Governor Mark Carney and ‘Brexit’ supporter Jacob Rees-Mogg; Carney was able to successfully fend off claims of a bias in stating that ‘Brexit’ was a risky option for the economy.

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GBP to AUD exchange rate chart

Latest New Zealand/Australian Dollar Exchange Rates

On Friday the Pound to British Pound exchange rate (GBP/GBP) converts at 1

The pound conversion rate (against pound) is quoted at 1 GBP/GBP.

The GBP to USD exchange rate converts at 1.263 today.

At time of writing the pound to new zealand dollar exchange rate is quoted at 2.114.

Please note: the FX rates above, updated 29th Mar 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.

Other Currency Exchange News

GBP/AUD Exchange Rate Forecast: UK Data This Week to Cover PMI Printings and National House Costs

The week to come is set to bring only a limited range of UK domestic data, with most of it being spread over the latter half of the week.

First off will be the Nationwide house prices for May, which will come alongside the manufacturing PMI, both for May. In the latter case, a minor rise is forecast.

Thursday will see the pessimistically-predicted construction PMI announced, while Friday will bring further house prices from Halifax and the services PMI, which is expected to fall.

Australian Dollar to pound sterling exchange rate chart

Australian Dollar (AUD) Exchange Rates Moved in Line with Fed Rate Hike Bets Last Week

As with the Pound, last week’s movement for the Australian Dollar was limited by a generalised shortage of domestic data releases.

Tuesday brought fairly lacklustre comments from departing Reserve Bank of Australia (RBA) Governor Glenn Stevens, while Wednesday’s construction work done result hit -2.6% on Q1.

Q1 capital expenditure also fell on Thursday morning, while over the week a whole the seesawing chances of a US interest rate hike taking place in June influenced the appeal of the ‘Aussie’.

GBP/AUD Exchange Rate Forecast: Australian GDP and Trade Balance Outcomes due in Coming Week

In a refreshing change from the previous week, the week to come is set to bring Australian data on every day, though some announcements are expected to be more impactful than others.

Major scheduled releases will consist of Wednesday’s Q1 GDP results, as well as Thursday’s April balance of trade outcome.

GDP has been forecast to dip from 3% to 2.5% on the year while the current trade deficit of -2.16bn is expected to improve slightly to -2bn.

Other notable announcements will include Thursday’s retail sales printings for April and Friday’s optimistically-forecast AiG services index for May.

Australian Election to Feature Head-to-Head Debate on Sunday

Away from Australia’s sparse distribution of economic data last week, the July 2nd election campaigns are still rumbling on and brought some key points to the fore between current Treasurer Scott Morrison and his shadow counterpart Chris Bowen.

Although current Prime Minister Malcolm Turnbull and Leader of the Opposition Bill Shorten are due to hold a televised debate on Sunday, the previous week’s debate between Morrison and Bowen went a long way towards laying out the economic prospects of the two main campaigning parties.

Speaking during the debate, Morrison said:

‘You can't pay for things…with money that isn't there. Having something costed is not the same as having something funded. I can know the price of something, but it doesn't mean I can afford it. We can afford what is in our budget’.

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