Pound Australian Dollar Exchange Rate Extends Uptrend, GBP Climbs Another 0.23% Vs AUD

The British Pound to Australian Dollar Exchange Rate Unsettled as Pressure Mounts on Chancellor Philip Hammond

• The Pound to Australian Dollar exchange rate today (28/10/16): +0.25pct at 1.6072.
• The Australian Dollar to Pound exchange rate today: 0.62220.

The British pound managed a 0.2 per cent rise against the Australian Dollar on Thursday, though elsewhere, GBP losses were widespread.

UK economic news has mainly focused on rising GDP in Q3 and a surprise deal for Nissan to make cars in the UK, both of which have ultimately weakened the Pound.

In addition to investor profit-taking doing damage to the Pound’s value, Sterling has also been held back by concerns that Nissan may only be operating in the UK due to a disadvantageous agreement behind the scenes.

In spite of some positive Australian data the ‘Aussie’ was weighed down by an increased atmosphere of risk aversion pervading markets on Thursday.

On the other hand, stronger-than-expected UK GDP figures prompted a surge in demand for the Pound, pushing the GBP/AUD exchange rate markedly higher.

The Pound to Australian Dollar (GBP AUD) exchange rate was able to recover from its worst levels on Wednesday afternoon, and began trending levels seen on Tuesday afternoon once again.

While GBP/AUD remained about a cent below the week’s opening levels, Sterling could recover further in the coming days if growth stats impress or if demand for risky currencies fades on US Presidential election jitters.

Tuesday saw the Pound continue its losing streak against most peers, with the GBP AUD exchange rate dropping to 1.58.

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The most recent devaluation of the Pound has been triggered by the Resolution Foundation think-tank, which has estimated that after November’s Autumn Statement comes in, the UK could end up in a major deficit state until 2020-21.

A predicted consequence of this ballooning deficit would be either further budget cuts or greater government borrowing, according to the think-tank, neither of which have ever been considered popular options.

Latest Pound/Australian Dollar Exchange Rates

Tomorrow’s UK GDP Stats may Batter Pound Australian Dollar Exchange Rate Further Still

While forecasts for the future have had a negative effect on the Pound Australian Dollar exchange rate, tomorrow morning’s domestic data may well amplify the level of negative GBP sentiment among investors.

The data in question will be the preliminary GDP growth rate figures for Q3, which are expected to show a slowdown on both the year and the quarter.

This outcome is likely to send the Pound tumbling, as it will be seen by some as a clear indicator that the ‘Brexit’ vote has directly triggered at least a short-term decline in the UK’s economic performance.

Australian Dollar Maintains Weekly Bull Run as National Inflation Climbs

The Australian Dollar (AUD) has been fortunate this week and continues to fare well today; a rally against all of the Australian Dollar’s regular peers has once again been seen on the news that coal and iron ore prices are still high.

While the current high price of commodities has undoubtedly aided the Australian Dollar, it remains to be seen if the root cause – reduced demand from China – will continue to keep costs high instead of sending them down on marketplace concerns.

Further support to the Australian economy has been offered by the recent Q3 inflation rate news, which has showed a rise on the year from 1% to 1.3% and an increase on the month from 0.4% to 0.7%.

Future Pound Australian Dollar Rate Forecast: Trade Prices and Home Sales Data due before RBA Rate Decision

The remainder of the week is not expected to see any radical shifts in the Australian Dollar Pound exchange rate's value, unless commodity prices experience a reversal.

Domestic data will focus on Q3’s export and import prices tomorrow, as well as September’s HIA new home sales early on Friday.

The next major news out of Australian will arrive on November 1st, when the Reserve Bank of Australia (RBA) makes its next interest rate decision. As of writing, a rate freeze at 1.5% is expected.

UK Economic Focus: Will UK Chancellor Face Difficult Decision on UK Finances?

Returning to the earlier Resolution Foundation (RF) predictions, officials from the think-tank have been laying out their vision of how Chancellor Philip Hammond may act before and after November’s Autumn Statement.

RF Chief Economist Matt Whittaker has remarked on the possibilities, stating;

‘The trade-off for [lowering financial targets] is significantly higher borrowing in the coming years. The Chancellor will need to decide if that is a price he is prepared to pay for adjusting to new economic times and setting out a direction for the new government’.