Home » AUD » Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Softer Despite Chinese Concerns

Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Softer Despite Chinese Concerns

australian-coins-1Although the ‘Aussie’ slipped against several of its currency counterparts overnight, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate shed 0.25% on Tuesday.

While remaining in a slightly elevated position against the Pound, the Australian Dollar declined against the US Dollar and Euro in response to China-based concerns.

In recent week’s economic reports from China (Australia’s main trading partner) have indicated that the policy measures introduced by the Chinese government are helping to shore up the nation’s growth.

However, last week’s new-home price report for China showed that values had fallen across a record number of cities, intimating that additional easing might prove necessary.


Example Currency Transfer

At the time, one analyst noted; ‘With falling house prices, we expect various cities to release loosening measures, this is an opportune time to do so. Investors expect the property sector to stabilise in the fourth quarter and pull the economy along.’

This data, in combination with geopolitical concerns in Ukraine, helped to push the Australian Dollar slightly lower against some of its rivals.

That being said, the ‘Aussie’ went on to recoup losses thanks to comments issued by Reserve Bank of Australia Governor Glenn Stevens.

During Australasian trading Stevens delivered a speech in Sydney. Within the address Stevens intimated that he is happy with the current level of fiscal policy but is ready to take additional action if it proves necessary.

The GBP to AUD exchange rate hit a low of 1.8161.

Stevens asserted; ‘I think low interest rates are doing the sorts of things they normally do in most respects. I’d still maintain up to this point that we’re doing what can reasonably be done. But if there’s more that can reasonably be done at some point, then obviously we’d do that. But I’m content right now. […] The highly accommodative financial conditions will then have a more powerful effect in engendering real growth. A rising confidence dynamic could unfold. The prospects for profitable investments by businesses would be significantly improved.’

At its last policy meeting the RBA reiterated its commitment to keeping interest rates on hold for the foreseeable future and unless Australian fundamentals surprise considerably one way or another, this attitude is likely to continue.

In the hours ahead the Pound to Australian Dollar exchange rate could fluctuate following the release of UK public finance figures.

Investors will also be taking an interest in the Confederation of British Industry’s Business Optimism gauge and Trends Selling Prices/Total Orders figures.

The optimism measure is expected to have slipped from 33 in June to 30 in July, but a better-than-forecast result could be Pound supportive.

Overnight Australian inflation figures will have a considerable impact on the Pound to Australian Dollar (GBP/AUD) exchange rate.

Australian Dollar (AUD) Exchange Rates

Currency   Currency Rate
Australian Dollar US Dollar 0.9389
Australian Dollar Euro 0.6948
Australian Dollar Pound 0.5499
Australian Dollar New Zealand Dollar 1.0827
US Dollar Australian Dollar 1.0653
Euro Australian Dollar 1.4376
Pound Sterling Australian Dollar 1.8174
New Zealand Dollar Australian Dollar 0.9231
As of 09:45 GMT

Comments are closed.