The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has declined by a tremendous amount today. The Pound (GBP) has seen similarly large losses elsewhere, owing to a double-dose of negative UK economic results over the past two days.
GBP/AUD Exchange Rate News: UK Data proves a Lead Balloon as Sterling reels from Detrimental Effects
The Pound Sterling (GBP) has fallen by -0.9% against the Australian Dollar (GBP/AUD) today, just one of a number of high-profile losses for the Pound. Other exceptional declines have included -1.1% against the Israeli New Shekel (GBP/ILS) and the Swedish Krona (GBP/SEK) and -1.6% against the Russian Ruble (GBP/RUB). This poor performance has been present against most of the Pound’s other rivals, with the few gains being of 0.2% against the Japanese Yen (GBP/JPY) and 0.3% against the Turkish Lira (GBP/TRY).
The biggest harmer of Sterling today has been the UK Trade Balance figures and Construction Output results for August, both of which have failed to live up to expectations. While the former field did see a narrowing of the UK trade deficit, the reduction was less than had been forecast; for the latter results, the situation was even worse, as the monthly and annual Construction figures both posted negatively. Further back, the Pound began today on a bad foot due to the Bank of England (BoE) meeting minutes showing a highly bearish attitude on the part of BoE policymakers.
AUD/GBP Gains by Leaps and Bounds as Metal Prices Support Australian Dollar Rally
The Australian Dollar (AUD) has managed to steal a 1% victory against the Pound Sterling (GBP) and other rivals today, thanks to upticks in the price of gold and copper. The ‘Aussie’ has also posted rises of 0.4% against the New Zealand Dollar (AUD/NZD) and 0.9% against the Chinese Yuan (AUD/CNY) and US Dollar (AUD/USD).
This highly positive showing has been brought about by a number of factors, not least the supportive rise in the price of Australia’s precious metal exports today. In addition to this, the International Monetary Fund (IMF) World Economic Outlook report from Tuesday has, by proxy, had good things to say about the future of the Australian economy. The devaluation of the US Dollar due to Fed uncertainty has also come to benefit the ‘Aussie’ today.
GBP/AUD Exchange Rate Forecast: Chinese Loans Data likely to Influence Pairing before Next Week Begins
Next week the release of a number of major reports that will affect the pairing, such as UK CPIs, the Chinese CPI and Australian Employment figures. Speeches from Fed officials will also be of interest. But before all of that, Chinese data out on Sunday will provide the first movement to the GBP/AUD exchange rate. The Aggregate Financing and New Yuan Loans results for September are due out and fortunately for China (and by extension, Australia), forecasts were optimistic at the time of writing.
Current GBP, AUD Exchange Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.0938 and the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4778 today.
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