The British Pound to Australian Dollar exchange rate was able to end last week higher due to Brexit news and poor Australian data.
A fresh slump was seen by investors in the British Pound to Australian Dollar exchange rate on Tuesday afternoon as sterling was sold off thanks to the latest comments from UK Chancellor Philip Hammond.
Speaking on Tuesday, Hammond stated that the government would not interfere with Bank of England (BoE) monetary policy and admitted that the Pound’s change in value would cause surges in inflation. The ‘Aussie’ benefitted thanks to a limited risk rally and at times was almost a cent and a half up against the Pound.
Although Australian consumer confidence showed a sharp weakening in the last week this was not enough to hamper the bullish antipodean currency.
Markets have remained in a state of increased risk appetite thanks to the more dovish tone of recent Federal Reserve commentary, leaving the GBP AUD exchange rate on a weaker footing.
Best levels seen in the Pound Australian Dollar exchange rate failed to hold on Monday afternoon despite lower demand for risk-correlated currencies, as Brexit concerns began to weigh on Sterling once more.
However, if risk-sentiment continues to slip with the US election just over two weeks away, GBP/AUD could make a more sustained recovery from its multi-year lows.
GBP/AUD experienced volatility in response to the October CBI survey, which revealed a sharper contraction in orders than forecast.
Sterling did not weaken significantly in response to this, however, thanks to an unexpectedly strong uptick in business optimism for the fourth quarter
GBP/AUD gained around half a cent last week, climbing from 1.6001 to 1.6082.
The ‘Aussie’ was strong earlier in the week, taking GBP/AUD down to a three-year-low of 1.5886 on Wednesday night before poor Australian data allowed the Pound to recover.
Today’s Australian Dollar exchange rates are displayed below:
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.
Today finds the pound to euro spot exchange rate priced at 1.16.
The pound conversion rate (against us dollar) is quoted at 1.237 USD/GBP.
Please note: the FX rates above, updated 19th Apr 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.
Pound (GBP) Exchange Rates Limp as Last Week’s Momentum Fades
Last week’s trade session was, in many cases, the Pound’s best week in well over a month as the British currency advanced against some of its major currency rivals - including the Australian Dollar (AUD), Euro (EUR) and US Dollar (USD).
This was largely due to Tuesday’s news that an MP vote on the final terms of a Brexit following negotiations would be ‘highly likely’, bolstering market hope that some MPs would fight for single-market access.
However, as British economic news published towards the end of the week failed to meet expectations, Sterling struggled to hold its best levels in some cases. Friday’s public sector net borrowing score came in worse than expected, leaving the British currency limp.
Australian Dollar (AUD) Rebounds from Employment-Disappointment Slump
Australian Dollar (AUD) exchange rates performed poorly in the latter half of last week, despite trending sturdily earlier in the week. Markets had initially been bullish on the ‘Aussie’ due to hopes of an extended period of neutrality from the Reserve Bank of Australia (AUD).
However, when September’s highly disappointing Australian employment results were posted, the Australian Dollar plunged as analysts began to speculate that a return to the RBA’s easing bias was possible.
As a result, the Australian Dollar plunged towards the end of the week. Slipping demand for risky currencies caused by higher bets of a December Fed rate hike also weighed on AUD.
After being sold against many rivals for the latter half of last week, the ‘Aussie’ rebounded from its lows on Monday.
GBP/AUD Rate Forecast: US Election Jitters and Australian Inflation Scores to Dictate Movement
Monday and Tuesday are relatively barren in terms of influential data for Britain or Australia, meaning the GBP/AUD exchange rate is likely to move on global economic factors.
The factor that instantly comes to mind is the US Presidential election. With the election now just over two weeks away, market jitters are inevitable regardless of polling results, meaning the risky Australian Dollar could see weakness as traders look for safer investments.
In terms of data, this week’s first key session for GBP/AUD will be Wednesday. The Asian session will see the publication of Australia’s Q3 Consumer Price Index (CPI) scores, which could offset Reserve Bank of Australia (RBA) easing speculation if they impress.
Wednesday will also see the publication of Britain’s September house loans report from the BBA, which could inspire some slight GBP movement. Otherwise, Brexit news or Thursday’s British Gross Domestic Product (GDP) scores are more likely to inspire Sterling trade.