While the UK economic recovery might not be celebration worthy just yet, it’s certainly plodding along quite well – a fact which has boosted the Pound against currencies like the Australian Dollar over the last few weeks.
The Australian Dollar exchange rate was trading in the region of 0.5767 against the British Pound as of 10:10 am GMT
After the Reserve Bank of Australia refrained from issuing an additional rate cut the ‘Aussie’ surged, but the South Pacific currency couldn’t hold on to these gains. Although yesterday’s UK manufacturing report wasn’t as upbeat as expected, it still supported the Pound during European trading and helped it advance on the ‘Aussie’.
Concerning domestic reports (including data showing a larger-than-forecast trade deficit) dampened Australia’s economic outlook overnight and weakened the AUD/GBP pairing further.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate hit a low of 0.5757
According to Australia’s statistics bureau the nation’s trade deficit stood at 815 million Australian Dollars in August. Although this was down from the previous month’s deficit of 1.38 billion Australian Dollars, it was still more than twice the 400 million Dollar shortfall economists expected.
The less-than-impressive result sparked this response from currency strategist Jonathan Cavenagh; ‘The economy is still going to need to do more work and that’s where the RBA has to come into the equation with additional interest-rate cuts. That’s got to probably weigh on Aussie sentiment.’
There was more bad news for Australia as the nation’s building approvals advanced by 7.7 per cent in August, year-on-year, as appose to jumping by 12.8 per cent as forecast. That being said, July’s YoY figure was upwardly revised to 28.8 per cent.
After the release of mildly disappointing UK construction data the AUD/GBP pairing was little changed.
Tomorrow movement could be inspired by Australia’s AiG performance of manufacturing index and UK services PMI data. If the reports indicate that the UK’s economic recovery continues to outshine Australia’s, the ‘Aussie’ could fall further.
Current Exchange Australian Dollar (AUD) Rates
< Lower > Higher
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9340 <
The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6908 <
The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5767 <
The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1392 >
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0707 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4487 >
The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.7341 >
The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8791 <
Correct as of 10:10 am GMT
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