The Pound Sterling to Australian Dollar exchange rate was little changed on Monday as investors took a wait and see approach to a week full of major economic data releases.
Against the US Dollar the ‘Aussie’ pushed back above the 93 cents level as the ‘Greenback’ softened ahead of key data releases.
The currency is forecast to experience movement as the week progresses and is likely to soften against the Pound on Tuesday due to the release of the latest UK GDP data. The report is expected to show that the UK economy expanded strongly in the first quarter. On a yearly basis GDP is expected to have risen from 2.7% to 3.2% whilst on a monthly basis it is forecast to have improved from 0.7% to 0.9%.
On Wednesday the Aussie is expected to see movement against the Euro as eagerly anticipated Eurozone inflation figures for April are due for release. If inflation in the single currency region shows further declines then expectations for the European Central Bank to introduce further stimulus measures will rise.
“The Aussie has more or less continued to trade sideways after last week’s inflation numbers. That’s partly because people are scared to take a view without more information. We are expecting the FOMC to announce a further reduction in quantitative easing and we are also expecting good payrolls data, and all of this will strengthen the US Dollar, coupled with the tensions with Russia and the Australian dollar being considered more risky than the US dollar, all of these things could combine to push the Aussie further down,” said forex trader Milica Nikolic.
Also due on Wednesday is the latest Chinese manufacturing figures. If the data shows further disappointing figures then we can expect the ‘Aussie’ to soften. China is Australia’s biggest trading partner.
Australian Dollar Update – 29/04/14
Pound Sterling fell against the Australian Dollar, Euro, US Dollar and other major peers on Tuesday as eagerly anticipated GDP data came in just below economist forecasts.
According to the Office for National Statistics the UK economy saw its economy expand by 0.8% in the first quarter of 2014. The rise marks the fifth consecutive period of GDP growth and is the longest run of expansion since the start of the financial crisis.
Australian Dollar (AUD) Exchange Rates
|Australian Dollar||US Dollar||0.9307|
|Australian Dollar||Pound Sterling||0.5516|
|Australian Dollar||New Zealand Dollar||1.0850|
|US Dollar||Australian Dollar||1.0742|
|Pound Sterling||Australian Dollar||1.8102|
|New Zealand Dollar||Australian Dollar||0.9224|