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Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast: Sterling Struggles Today as UK Referendum Talks Drag On

Australian Dollar Currency Forecast

The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has made middling movement today. In other pairings, the Pound (GBP) has largely lost out and trended narrowly or fallen against the usual peers.

GBP/AUD Exchange Rate News: UK Referendum Talks Bring Investor Concerns to the Surface Again

The Pound Sterling (GBP) has fallen slightly against the Australian Dollar (GBP/AUD) today, mainly due to the Pound being in a severely devalued state overall. This has come about following last night’s discussions between Prime Minister David Cameron and the heads of the European Union on the terms of renegotiation for the UK’s current membership of the EU. Although Cameron emerged late in the night with an optimistic tone, the flagging state of the Pound today suggests that investors believe otherwise. Although the precise events of the talk were not divulged, it is thought that the biggest stumbling block, the plan to freeze migrant benefits for 4 years upon their entering the country, was not cleared and remains a sore point with EU leaders such as Francois Hollande and Angela Merkel. This loss in the face of seemingly beneficial news is largely a repeat of yesterday’s Pound events.

The Pound has made virtually no headway against the Australian Dollar (GBP/AUD) today and has otherwise fallen by -1.7% against the Russian Ruble (GBP/RUB) and risen by a mere 0.3% against the Omani Rial (GBP/OMR).

Australian Dollar (AUD) Down as Commodity Crisis Strikes Back

The Australian Dollar (AUD) has fared little better than the Pound (GBP) today, with losses being recorded against the New Zealand Dollar (AUD/NZD) and the US Dollar (AUD/USD). However, it is worth noting that for the most part, the ‘Aussie’ has actually been trending in a tight range. This is thought to be due to highly pessimistic forecasts for the mining industry in the coming year – due to oversupply and perpetually low prices, some economists believe that many Australian and global mining companies will have a much harder time turning a profit and may even face closure.

GBP/AUD Exchange Rate Forecast: US PMI Figures may Affect ‘Aussie’ Today before Weekend

No further UK or Australian economic publications remain today, but movement in the pairing could still be caused by the US Markit Composite and Services PMIs for December. At the time of writing, the only forecast made was for a decline from 56.1 points to 55.9. In the event that this prediction is accurate, the ‘Aussie’ can be expected to rise marginally against the Pound.

Looking ahead to next week, the UK will have the first say in the pairing exchange rate when the Confederation of British Industry (CBI) Reported Sales for December are released on Monday morning. At the time of writing, forecasts were largely positive with a rise from 7 points to 20 being predicted.

For Australia, the first notable release will come on Wednesday with the Conference Board Leading Index for October.

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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