Pound Australian Dollar Exchange Rate Slides -0.25pct Today As RBA Leave Cash Rates On Hold

Published: 20 Oct 2017 21:24 Currency Markets Forex

Pound to Australian Dollar exchange rate forecast

Pound Sterling (GBP) Exchange Rates Boosted by Return to Growth for UK Services PMI

  • The Pound to Australian Dollar exchange rate today: +0.08pct lower at 1.74734.
  • The Australian Dollar to Pound exchange rate is 0.57230.

The GBP fluctuated against the AUD on Tuesday afternoon, as both currencies were strengthened by yet another US Dollar selloff.

As ISM’s Non-Manufacturing Composite report came in well below expectations, demand for risk-correlated currencies as well as the increasingly appealing Pound increased.

The Aussie dollar gave up much of its earlier bullishness however, as other risky currencies like NZD were more appealing due to commodity news

Demand for the AUD strengthened substantially following the RBA’s decision to leave interest rates on hold, with investors encouraged by the less dovish tone displayed by policymakers.

With the chances of the Federal Reserve raising interest rates imminently still weak there was little to prevent the antipodean currency from making bullish gains across the board on Tuesday morning.

The GBP/AUD fluctuated relatively widely on Monday afternoon, showing little in the way of bias. The Pound remained volatile throughout the day, as the currency nearing its post-Brexit highs against many major currencies left investors hesitant to pile in.

‘Aussie’ investors, on the other hand, steadied themselves ahead of Tuesday’s Asian session, which will see the RBA’s September policy meeting being held. This meeting will be the final one to be led by outgoing RBA Governor Glenn Stevens.

There was some positivity from this morning’s Australian data, with the TD Securities and Melbourne Institute inflation measures pointing towards an uptick in domestic inflationary pressure.

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If this proves to be the case then the Reserve Bank of Australia is less likely to ease monetary policy further in the near future, a prospect that could see the GBP/AUD exchange rate back on a downtrend.

Pound Sterling (GBP) exchange rates shot up considerably over Monday morning, thanks to the outcome of August’s crucial UK services PMI result.

This had originally been forecast to rise from 47.4 to 49.4, which meant that the actual rise to 52.9 sent the Pound rallying against the Australian Dollar (GBP/AUD) and virtually all of its other peers.

Given that fears still linger about potential long-term damage from the ‘Brexit’ vote, UK investors were broadly cheered by this result, although some economists cautioned against committing to such optimism before the year’s remaining UK PMI results were released.

GBP to AUD exchange rate chart

Latest Pound/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.

Today finds the pound to euro spot exchange rate priced at 1.171.

FX markets see the pound vs us dollar exchange rate converting at 1.264.

NB: the forex rates mentioned above, revised as of 29th Mar 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 Exchange Rate Outlook: BoE Speech and UK Production Stats due on Wednesday

The next major UK data likely to impact the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate will be released on Wednesday, when the morning will bring the nation’s manufacturing and industrial production results for July.

As it stands, forecasts have been pessimistic, with expectations being for a decline in both the month and the year for both fields. Also due over the morning on Wednesday will be a speech from Bank of England (BoE) official Jon Cunliffe.

Over Wednesday afternoon, BoE officials will attend a hearing at the Treasury Select Committee, while the National Institute of Economic and Social Research (NIESR) will release its GDP estimate for Q3.

Australian Dollar to pound sterling exchange rate chart

Australian Dollar News: AUD Exchange Rates Steady while US Dollar Declines

Australian Dollar (AUD) exchange rates have been stable during trading on Monday, although this is mainly due to a shortfall in the value of its major rival, the US Dollar.

Australian domestic data has been extremely poor at the start of the week, with the AIG services index recording a collapse from a growth figure of 53.9 to a contraction range 45 points.

Other data out of the nation has seen the business inventories figure for Q2 rise on the quarter, along with the gross company profits result for the same period.

Australian Economic Outlook: RBA Rate Decision and Q2 GDP Data to Impact AUD Exchange Ratesk

Tuesday morning will bring the next big Australian economic announcement this week, consisting of the Reserve Bank of Australia (RBA) interest rate decision for September; a rate freeze at 1.5% has been forecast.

Other Australian data to watch out for will include Wednesday’s AIG construction index for August, as well as the Q2 GDP growth rate results.

In addition to a late speech from RBA official Philip Lowe on Wednesday night, the ‘Aussie’ may also be moved towards the close of the week by July’s trade balance outcome, which is due on Thursday.

Look to the Long-Term for UK Economic Performance, Warned Lloyds Economist

While the Pound was aided by the latest services PMI advance, Lloyds Bank Commercial Banking Managing Director and Head of Global Services Chris Sood-Nicholls reiterated sentiments that came after the previous week’s UK manufacturing PMI trumped expectations.

Speaking on Monday morning, Sood-Nicholls stated;

‘It is too easy to over-interpret often volatile monthly data, particularly sentiment-based indices. Without a sustained period of hard numbers around business investment and trading, it is impossible to get an accurate picture of the economic impact of the vote to leave the EU’.

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