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Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate – ‘Aussie’ back on the retreat

Pound to Australian Dollar exchange rate chart

The Australian Dollar fell from yesterday’s highs as investors look ahead to Wednesday’s Chinese data releases and as confidence remains high that the US Federal Reserve will continue to scale back its quantitative easing programme.

Hawkish members of the Federal Reserve hinted that they were still keen to cut back on the US stimulus programme, despite last Friday’s jobs data disappointed investors and showed a worrying trend that more Americans are giving up on their search for work.

“Since Friday’s disappointing payrolls report we’ve heard from a number of Fed policymakers who insisted that any decision to taper further would not be swayed by last week’s numbers with Atlanta Fed President Dennis Lockhart following St. Louis Fed member James Bullard by saying that he would continue to support further reductions in stimulus.” said Michael Hewson from CMC.

Foreign direct investment in China will be the major piece of data due for release on Wednesday which will impact the ‘Aussie’. A positive reading could see the currency recover some ground as when China, Australia’s biggest economy posts better-than-expected data it often has a positive effect on the ‘Aussie’.

“The balance of factors is still more to the downside for the Aussie than the upside,” said Stan Shamu, a Melbourne-based market strategist at IG Ltd. “If we see any disappointment on the Chinese or Australian data front then we’d expect to see the ‘Aussie’ come off a little, as well as if Fed members remain quite bullish on the U.S. economy.

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Any gains however are likely to be short-lived as we forecast that on Thursday the release of Australian unemployment data could weigh as it is expected to show that the country’s unemployment rate held at a four-year high.

Current Australian Dollar Exchange (AUD) Rates

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The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9008 <

The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6584 <

The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5489 <

The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.0736 <

The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1096 >

The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5179 >

The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.8199 >

The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.9318 >

Correct as of 09:40 am GMT