The Pound’s bullish performance in the wake of yesterday’s impressive UK retail sales data left the AUD/GBP pairing struggling overnight, but the ‘Aussie’ was able to jump against its North American rival as news from China and the US gave the South Pacific asset a boost.
The Australian Dollar was trading in the region of 0.5960 against the British Pound as of 10:30 am GMT
Domestic data may have been lacking, but as China is Australia’s most important trading partner a report showing better-than-expected growth in the third quarter improved the latter nation’s economic prospects and pushed the ‘Aussie’ higher.
On a seasonally adjusted basis, China’s economy expanded by 2.2 per cent in the third quarter from the second.
Economists were expecting quarterly growth of 2.1 per cent.
Quarterly growth for the previous three-months was also upwardly revised to 1.9 per cent.
Economist Zhu Haibin said of the result; ‘There’s no question China can achieve this year’s growth target of 7.5 per cent [...] We expect the fourth quarter will continue to be quite decent growth but moderate a little bit.’
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate hit a high of 0.5978
The positive result helped the Australian Dollar gain on several of its main counterparts.
While the asset slipped slightly from the four-month high recorded against the US Dollar yesterday, it’s still heading for a five-day gain of 1.7 per cent – the ‘Aussie’s most impressive weekly advance for a month.
The Australian Dollar garnered support yesterday as Federal Reserve Official Charles Evans asserted that accommodative easing should be maintained.
During a speech in Wisconsin, Evans – who heads up the Reserve Bank of Chicago – commented that data releases aren’t giving central bank officials much information at the moment.
During the Federal shut down several pieces of influential US data (including non-farm payrolls) weren’t able to be published. As reports start emerging Fed officials will be able to form a better idea of the US economic recovery and whether easing should be tapered in the months ahead.
In response to the ‘Aussie’s movement market analyst David de Ferranti noted; ‘One thing that has been supporting the Aussie is the yield advantage over the US Dollar. We are seeing a turnaround for the Chinese economy, and that bodes well for the Australian Dollar.’
Next week Australian data to be aware of includes the Conference Board leading index and the nation’s consumer price index. Chinese reports, including HSBC/Markit Flash Mfg PMI will also be influential.
Current Australian Dollar Exchange (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9642 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.7045 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5960 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0369 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4193 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6776 <
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8799 <
Correct as of 10:30 am GMT