A mixture of UK news and the upcoming Reserve Bank of Australia policy meeting left the ‘Aussie’ weaker against the Pound during European trading. The South Pacific asset is also heading for its first weekly decline against the ‘Greenback’ this month as increasing Federal shutdown fears see higher-risk assets ditched.
The Australian Dollar exchange rate was trading in the region of 0.5814 against the British Pound as of 10:15 am GMT
UK consumer confidence jumping to an almost six-year high, coupled with a surge in house prices and provocative comments from Bank of England Governor Mark Carney, saw the Pound broadly strengthen and the AUD/GBP pairing slide.
As well as adopting a bearish relationship with Sterling, the Australian Dollar retained recent declines against its US counterpart as concerns that unresolved US budget issues could soon lead to a potentially disastrous Federal shutdown lessened the allure of higher-risk currencies.
The ‘Aussie’ was also adversely affected as Australia’s Treasurer Joe Hockey asserted that the country’s budget has worsened in recent weeks.
Hockey stated; ‘The presented numbers in the pre-election economic and fiscal outlook are different to what exist today. I’m advised that we’ll go extremely close to the debt limit of A$300 billion before Christmas.’
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate hit a low of 0.5786
While the ‘Aussie’ has advanced by 5.3 per cent this month, largely in reaction to the Federal Reserve’s shock decision to refrain from tapering easing, the currency is in line to post a five-day decline against its US counterpart.
The increasing odds of the Reserve Bank of Australia issuing an additional rate cut before the close of the year has been weighing on the Australian Dollar, so next week’s RBA policy meeting will be of particular interest.
According to currency consultant Richard Breen, ‘I don’t think people will be too willing to take any big positions with that kind of event risk on the horizon. If Aussie can hold above 93.40 US cents, and we do get some kind of resolution out of the US, then I think it has the legs to go higher.’
The RBA policy meeting takes place on the 1st October, but investors will also be focusing on Australian retail sales and performance of services reports.
Additionally, China’s manufacturing and non-manufacturing PMI (scheduled for publication on the 1st and 3rd respectively) will be of interest.
Current Exchange Australian Dollar (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9333 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6915 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5814 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1305 >
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0716 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4433 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.7224 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8885 >
Correct as of 10:15 am GMT