The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has remained strong today, despite UK monthly and yearly Retail Sales results for July not meeting with expectations.
Drop in Public Finances Tomorrow may Further GBP/AUD Gains
The Pound Sterling (GBP) has risen by 0.5% against the Australian Dollar (GBP/AUD) today, a marginal drop since before the UK Retail Seals figures came out. Although the results all showed growth in the UK economy, the figures either met with or fell slightly short of predictions, which triggered a small dip in the Pound’s performance.
Despite this, the Pound stands to expand its current gains against the ‘Aussie’ (AUD) tomorrow with the release of the UK Public Finances and Public Sector Net Borrowing figures for July. There have been no forecasts for the former result, but for the latter, a drop of -£2.8bn is expected; if this proves to be accurate, the Pound may repeat (if not better) its earlier performance against the Australian Dollar. Sterling can also be expected to recover from its current downtrend of -0.3% against the New Zealand Dollar (GBP/NZD) as well.
Earlier…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has risen considerably today, as news from the Federal Reserve has disadvantaged the ‘Aussie’ (AUD) significantly.
Pound Could Expand Gains if UK Retails Sales Grow, NZD may Decline
The Pound (GBP) has risen against the Australian Dollar (GBP/AUD) by 0.6% today, but has trended narrowly against the New Zealand Dollar (GBP/NZD). The Pound’s rise against the Aussie’ (AUD) this morning can be attributed to the contents of the Federal Open Market Committee (FOMC) minutes, released last night. In the minutes, Fed committee members were of the opinion that conditions for a US interest rate hike were close, and that only ‘some’ further market improvement was needed before the increase would go ahead.
The Pound may advance further against the Australian Dollar later today, and reverse its current downtrend against the New Zealand Dollar (NZD), if the UK monthly and yearly Retail Sales figures for July come in positive.
Earlier…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has advanced fractionally today, although elsewhere the Pound (GBP) has extended some of the incredible gains it saw yesterday.
Pound Recovers from Knee-jerk CPI Rise and Fall, Antipodean Pair show Downtrend
The Pound Sterling (GBP) has risen by 0.2% against the Australian Dollar (GBP/AUD) today, and has seen a marginally greater gain of 0.3% against the New Zealand Dollar (GBP/NZD). This comes after this morning saw a crash in the Pound’s performance. After turning hawkish for most of yesterday, the Pound’s value promptly collapsed at the beginning of today’s trading session and Sterling trended narrowly against all competitors.
Today’s recovery is likely caused by a statement from Bank of England (BoE) Monetary Policy Committee (MPC) member David Miles, in which Miles forecast a rate rise ‘pretty soon’, and said of the possibility of higher borrowing costs; ‘I don’t think it’s anything to worry about, it’s a sign of health’.
The Pound rose by over 0.4% against the Norwegian Krone (GBP/NOK), the Swedish Krona (GBP/SEK) and the Israeli New Shekel (GBP/ILS) and saw its greatest rise of 1.6% against the Turkish Lira (GBP/TRY). In terms of losses, Sterling fell by over -0.3% against the Indian Rupee (GBP/INR) and the Swiss Franc (GBP/CHF).
‘Aussie’ (AUD) shows Lethargic Movement, ‘Kiwi’ (NZD) Dives as Milk Prices Stagnate
The Australian Dollar (AUD) has fallen by -0.2% against the Pound Sterling (AUD/GBP) today and it’s only real gain has been by 0.3% against the New Zealand Dollar (AUD/NZD). Elsewhere, the ‘Aussie’ has trended narrowly. This has been caused by the Westpac monthly Leading Index for July, which saw no change from the previous result of 0.0%. While such a result doesn’t indicate a decline in the Australian economy, it also doesn’t encourage optimism for growth and the result is fitting of the Reserve Bank of Australia’s (RBA) assertion that Australia’s economic recovery will be steady and slow.
The New Zealand Dollar (NZD) has deteriorated in value today, printing losses of over -0.3% against the Australian Dollar (NZD/AUD), the Chinese Yuan (NZD/CNY), the Pound Sterling (NZD/GBP) and the Euro (NZD/EUR). This slump was triggered by a rise in the global price of milk; despite increasing to $3.75-$4 per kilogram of milk solids, the figures are still well below the cost of producing milk in New Zealand. An estimate by agricultural analyst DairyNZ placed the breakeven point at around $5.70.
Pound Expected to Trump Pacific Pair if Fed Minutes Show Hawkish Attitudes
The Pound Sterling to Australian Dollar and New Zealand Dollar exchange rates will be most immediately affected by the UK annual Retail Sales figures for July, due out tomorrow. Forecasts are optimistic for the results, and the Pound is likely to gain further against the ‘Aussie’ (GBP/AUD) and the ‘Kiwi’ (GBP/NZD) with the results of the US Federal Open Market Committee (FOMC) minutes for July 28-29, out later today. Any signs of hawkish opinions among Committee members are sure to strengthen the US Dollar’s performance, and this will only mean bad news for the antipodean pair.
Current GBP, AUD, NZD Exchange Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.1336, the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4692, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending in the range of 2.3839, the New Zealand Dollar to Pound Sterling (NZD/GBP) exchange rate was trending in the region of 0.4201, the Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate was trending in the region of 1.1172 and the New Zealand Dollar to Australian Dollar (NZD/AUD) was trending in the region of 0.8955 today.
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