Pound Sterling to Australian Dollar (GBP/AUD) exchange rate = 1.7905
Pound Flat-lines as UK News Decimates Sterling Demand
• UK Unemployment Rate Falls
Yesterday UK employment figures showed that the UK’s unemployment rate tumbled to a fresh almost six-year low in the three months to June. The unemployment rate now stands at 6.4%, but the report failed to get investors enthused as it showed a decided lack of wage growth – intimating that the recovery has so far only managed to produce an influx of low-paid positions.
Industry expert insight…
John Philpott of The Jobs Economist notes; ‘The data may indicate a boom but a fall in the cash value of total average weekly earnings signals ‘Paymageddon’. This recovery will serve to re-write the economic textbook: a record number of people in work, unemployment falling at an even faster pace of decline than in recent quarters yet all this good news is combined with ever lower pay pressure. Good news for the jobless is being offset by ever slimmer pickings for those already in work, giving the UK labour market a distinctly bitter-sweet flavour. This doesn’t look like a labour market that needs an interest rate hike to cool it down but instead one where workers appear desperate for a pay hike.’
KEY MOVEMENT: The GBP to AUD exchange rate hit a low of 1.7890
• Australian Data limited, AUD/USD Pushes Above 93 Cents
While there was no Australian data to cause Pound Sterling to Australian Dollar movement overnight, the ‘Aussie’ was able to stand firm against the US Dollar having pushed above 93 cents following the release of disappointing US retail sales figures. Retail Sales in the world’s largest economy unexpectedly stagnated in July instead of rising by the 0.2% anticipated and assets like the Australian Dollar were accordingly able to advance on a softened ‘Greenback’. With the UK’s RICS House Price Balance report showing a decline from a negatively revised 52% in June to 49% in July the Pound Sterling to Australian Dollar exchange rate extended declines modestly on Thursday. However, some industry experts view Sterling’s weakness as temporary.
Industry expert insight…
Head of Global Economics Brian Martin stated; ‘Whilst the tone of the report was dovish and the BoE are clearly data watching, Sterling is vulnerable in the short term. But on any signs of a re-acceleration in growth and a pick-up in wages, expectations of a rate increase [in the fourth quarter] are likely to rise again, and with them Sterling.’
Pound to Australian Dollar Forecast
The GBP to AUD exchange rate is likely to continue trending in a narrow range for the rest of the day. A lack of economic reports for either the UK or Australia could limit GBP to AUD movement until the publication of the UK’s second quarter growth figures, due out tomorrow at 09:30 GMT. Stronger-than-anticipated expansion could help the Pound recover some of its recent losses.
KEY MOVEMENT: The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate hit a high of 1.7962, but GBP/AUD is still down by 0.15% on the day’s opening levels.
Pound Sterling to Australian Dollar Exchange Rate Predictions for Next Week
Next week we predict that volatility in the Pound to Australian Dollar (GBP/AUD) exchange rate could be caused by…
• The UK Consumer Price Index
• Australia’s Westpac Leading Index
• Australia’s Skilled Vacancies Report
• Australia’s Conference Board Leading Index
• UK Retail Sales
• UK Public Finances
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is trending in the region of 1.7910.
Australian Dollar Forecast – GBP to AUD Exchange Rate Continues to Trend Lower
Yesterday saw the Pound to Australian Dollar exchange rate hit a 2-month low following Sterling’s mounting difficulties as a result of poor labour market data.
This morning’s UK quarter-on-quarter Gross Domestic Product (GDP) data met with the forecast figure of 0.8%, and the year-on-year GDP showed a fractional rise to 3.2% from the forecast of 3.1%. Despite the positive aspects, the data is unlikely to have a massive impact on Sterling performance but should help to recover a fraction of the losses seen against the ‘Aussie’ (AUD). Moreover, given the lack of Australian domestic data releases today, it is likely that the GBP/AUD exchange rate will show a minimal gain.
Australian Dollar (AUD) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Australian Dollar,
,US Dollar, 0.9304,
Australian Dollar,,Euro, 0.6960,
Australian Dollar,,Pound, 0.5576,
Australian Dollar,,New Zealand Dollar, 1.0953,
US Dollar,,Australian Dollar, 1.0737,
Euro,,Australian Dollar, 1.4362,
Pound Sterling,,Australian Dollar, 1.7913,
New Zealand Dollar,,Australian Dollar, 0.9109,
[/table]
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