Foreign Currency Investors Saw the Pound to Australian Dollar rate Rally Sharply Yesterday. Stable Impacts of National Living Wage Fail to Excite Sterling Investors Previously, but an Abrupt End to Conservative Leadership Race Saw the GBP to AUD Exchange Rate Soar.
Although the latest Westpac Consumer Confidence Index indicated a weakening in domestic sentiment this failed to boost the pound to Aussie dollar exchange rate today.
Investors have been taking the opportunity to sell out of the Pound ahead of tomorrow’s Bank of England rate decision, given the general consensus that interest rates will be cut to a new low.
With the outcome of the federal election now clear the Australian Dollar exchange rates were boosted further on Tuesday by an improved NAB Business Confidence Index.
This suggested that sentiment had strengthened markedly in the domestic economy, encouraging speculation that the Reserve Bank of Australia (RBA) could hold off on lowering interest rates for longer.
As UK politics find some relief, the British pound to Australian dollar exchange rate edged higher to trend in the region of 1.724.
Sterling was at the opposite ends of the spectrum on Monday, having started negatively due to concerns about a post-‘Brexit’ UK.
Lately, however, the Pound has leapt up against rivals due to Theresa May taking the Conservative and national leadership in a surprise development.
Sterling has been an insecure option for investment of late, with sizable losses being recorded against the Euro, US Dollar and Australian Dollar exchange rates, among others.
In a slightly positive development, statistics released since April’s National Living Wage introduction have shown that employers have been able to retain employees by lowering profits or raising prices.
Critics of the measure had initially been sceptical, with mass layoffs being forecast among the more financially stretched small employers.
Here are today’s AUD fx rates
On Friday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
At time of writing the pound to pound exchange rate is quoted at 1.
The live inter-bank GBP-EUR spot rate is quoted as 1.167 today.
Today finds the pound to us dollar spot exchange rate priced at 1.245.
NB: the forex rates mentioned above, revised as of 19th Apr 2024, are inter-bank prices that will require a margin from your bank. Foreign exchange brokers can save up to 5% on international payments in comparison to the banks.
Pound to Australian Dollar Forecast: All Eyes on the BoE This Week as Interest Rate Decision Approaches
The Bank of England (BoE) will take centre stage for investors in the Pound this week, due mainly to the coming of Thursday’s first interest rate decision after the EU Referendum.
The central bank warned before the June 23rd vote day that harsh policy measures would likely be needed to right the economy after a ‘Brexit’ vote, therefore investors are not optimistic on Thursday’s outcomes.
In particular, expectations for the rate decision itself have been for a cut from the current 0.50% down to 0.25% or even 0%.
Australian Dollar (AUD) Exchange Rates Present Mixed Picture Today as Election Appears to have Finished
The ‘Aussie’ has been in mixed demand of late , with moderate losses coming alongside similarly-sized gains for the antipodean currency.
In domestic news, current Prime Minister Malcolm Turnbull has claimed the election as a victory for the Liberal-National Coalition, with opposition leader Bill Shorten conceding this.
The victory has been a somewhat drawn out and hollow process for Turnbull, however, as hopes of a crushing victory were dashed early on by the close nature of the race.
National Confidence Result due Tomorrow, Westpac Confidence Printings out on Wednesday
The near-term movement of the Australian Dollar exchange rates is set to be decided by domestic data, which will come first tomorrow morning when the NAB business confidence result for June is announced; this is forecast to rise from 3 points to 4.
Following on in this vein on Wednesday morning will be the Westpac consumer confidence printing for July; this has a decline from 102.17 to 101.20 on the cards.
One of the week’s biggest announcements will come on Thursday, when the rise-predicted national unemployment rate for June is due to be announced.
Australian PM Turnbull Spoke of Economic Growth in Victory Speech
Australia’s Prime Minister Malcolm Turnbull has given his victory speech to voters recently, stating:
‘It’s a great day to thank the Australian people, for the decisions they’ve taken in this election. And to commit to them, anew, our absolutely unrelenting determination, to ensure that this parliament delivers good government, wise legislation and builds on the strengths of our economy’.