The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is in for an extremely influential week ahead with a wealth of Australian ecostats due to emerge.
Although Monday’s relatively quiet for both Australia and the UK by way of data, Tuesday’s likely to heat up Pound Sterling (GBP) and Australian Dollar (AUD) trading quite significantly. The UK’s BRC Like-for-Like Sales stat will emerge on Tuesday morning, to be followed by the Chinese Consumer Price Index (CPI).
Australian Dollar (AUD) Exchange Rate Forecast for Movement on Chinese Data
China is Australia’s largest trading partner and data from the Chinese nation can therefore have a massive influence on the Australian Dollar’s (AUD) performance. Additionally, Tuesday will see the release of Australian Home Loans and Australian Investment Lending data which could be another moderately influential factor to consider in ‘Aussie’ (AUD) trading.
Thursday will be one of the most exciting days for Australian Dollar movement with the release of Australian Employment Change and Unemployment Rate data due out. The Australian Unemployment Rate resided at 6.2% in April and any increase in joblessness could see the ‘Aussie’ (AUD) sink against other currency majors.
Additionally, the Australian Dollar (AUD) will be hit with a double-whammy when China releases its Retail Sales and Industrial Production figures.
For the UK, Wednesday’s Industrial Production and Manufacturing Production data could be quite influential for the Pound, especially when coupled with the NIESR Gross Domestic Product (GDP) stat also out in Wednesday’s trading.
Friday will close the week with UK Construction Output data; in March on the year the ecostat resided at 1.6%.
RBA and BoE Speculation Forecast to Cause Major Pound (GBP) and Australian Dollar (AUD) Exchange Rate Fluctuations
Additionally, any speculation regarding either the Reserve Bank of Australia (RBA) or the Bank of England (BoE) could cause some interesting Pound Sterling to Australian Dollar (GBP/AUD) exchange rate movement.
The RBA made a second downward adjustment to interest rates in May, dropping them from 2.25% to 2.00%. The Australian economy has struggled in recent months and narrowly avoided recession which has caused investors to be cautious when it comes to interest rates.
The Pound was subject to losses on Friday when the BCC downgraded the UK’s GDP growth forecast for 2015. The institution suggested this year would only see 2.3% growth rather than the 2.7% initially forecast.
BCC chief economist David Kern commented: ‘In spite of the downgrading of our 2015 growth forecast, UK prospects remain solid overall. The slowdown this year is likely to be temporary. Earlier falls in oil, food and other commodity prices continue to support UK growth, and Britain’s flexible and vibrant labour market is a major source of strength for our economy.’
Kern continued: ‘The UK’s ability to generate tax revenues has worsened due to big falls in oil and gas output and lower profits of UK banks. We will have to adjust to this harsher and more difficult reality. It is therefore vital that we focus on policies that support higher productivity and a strong recovery in exports, while persevering with the necessary and difficult job of cutting the fiscal deficit.’
On Friday, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 1.9975.
Comments are closed.