The Pound to Australian Dollar (GBP/AUD) exchange rate edged lower today as the ‘Aussie’s resilient attitude prevailed.
Sterling may have strengthened against many of its most traded currency counterparts as a result of yesterday’s Bank of England Financial Stability report, but it didn’t manage to dethrone the Australian Dollar, which has been reigning over its currency counterparts for much of the week.
This week’s impressive Chinese manufacturing PMI bolstered the commodity driven ‘Aussie’ while the stream of disappointing data releases emerging from the US over the last few days have also given the Australian Dollar a boost.
Domestic reports have been lacking, and investors still believe that the Reserve Bank of Australia will leave interest rates on hold for the foreseeable future, but that hasn’t stopped the ‘Aussie’ from trending above 0.94 cents against the US Dollar and fending off the Pound.
According to market analyst David de Ferranti; ‘After a weak of disappointing headline US data, there is one last hurdle to overcome before the week’s end, with the final June reading of the University of Michigan Confidence Index’.
The measure of US sentiment is expected to rise from 81.2 to 82.0 in June, but if data happens to follow the recent trend in US reports and falls short of forecasts, the Australian Dollar could push higher against its US peer.
While the GBP to AUD exchange rate was little affected by the UK’s Consumer Confidence and Hometrack Housing reports, the pairing did fluctuate modestly following the release of final first quarter GDP figures for the UK and the nation’s current account data.
Although the annual pace of first quarter GDP was revised down modestly to 3.0 from a previous estimate of 3.1% it was confirmed that the UK expanded by 0.8 per cent in the first three months of the year. The report also detailed the most rapid rate of growth in business investment since 2012.
The UK’s current-account deficit was also shown to have narrowed from 23.5 billion Pounds in the final quarter of last year to 18.5 billion Pounds in the first quarter of 2014.
After the reports were published the Pound to Australian Dollar (GBP/AUD) exchange rate remained 0.15% lower.
The Australian Dollar was able to extend gains against the Euro during the European session as several measures of confidence for the Eurozone fell short of forecasts.
Australian Dollar (AUD) Exchange Rates
|Australian Dollar||US Dollar||0.9415|
|Australian Dollar||New Zealand Dollar||1.0750|
|US Dollar||Australian Dollar||1.0618|
|Pound Sterling||Australian Dollar||1.8083|
|New Zealand Dollar||Australian Dollar||0.9296|