Earlier this week a slightly disappointing employment report for Australia dented the ‘Aussie’ and saw the currency decline against the majority of its rivals.
The Australian Dollar exchange rate was trading in the region of 0.5928 against the British Pound as of 11:10 am GMT
However, with UK data also failing to live up to expectations and the prospect of positive Chinese trade data on the horizon the Australian Dollar recovered losses and approaches the weekend in a stronger position against the Pound and ‘Greenback’.
As China is Australia’s main trading partner, a strong import report would brighten the latter nation’s economic outlook, so with economists anticipating a 7 per cent year-on-year imports increase in September the ‘Aussie’ rallied. A 5.5 per cent gain in exports has also been forecast.
According to one Sydney based currency strategist; ‘The momentum has picked up and a lot of the fears have waned over Chinese growth. There’s no doubt that’s been one of the reasons the Aussie Dollar has been more resilient than in the past.’
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate hit a high of 0.5943
Meanwhile, hopes that diplomatic discussions in the US could prevent the world’s largest economy defaulting in a week’s time supported risk appetite and helped higher-yielding currencies like the ‘Aussie’ advance.
The Pound, on the other hand, was dragged lower as UK construction output declined unexpectedly in August. While economists had envisaged a gain of 0.8 per cent, output actually dropped by 0.1 per cent.
This is the latest in a series of less-than-impressive data releases for the UK and contributes to Sterling’s ongoing bearish relationship with several of its most traded rivals.
Australian data to look out for next week includes the nation’s performance of services index, home loans and business confidence figures.
The publication of minutes from the Reserve Bank of Australia’s recent policy meeting will also be of particular interest.
Current Exchange Australian Dollar (AUD) Rates
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The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9472 >
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6983 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5928 >
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1387 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0559 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4320 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6873 <
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8757 <
Correct as of 11:10 am GMT