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GBP/AUD Exchange Rate Forecast to Edge Higher on China’s Stock Market Woes, GBP/NZD Dives as UK Hiring Slows

Pound Sterling Currency Forecast

Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Edge Higher despite Delayed BoE Rate Hike Bets

The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate edged higher by around 0.11% on Wednesday morning.

The British asset dived versus nearly all of its peers on Wednesday amid fears that Sterling overvaluation will delay a Bank of England (BoE) interest rate hike. In addition, the Pound cooled after a report from the Recruitment and Employment Confederation (REC) and accountants KPMG showed the pace of hiring in the UK slowed in June. The significant Sterling weakness will be welcomed by the central bank given that overvaluation is having a marked effect on the British economy, as evidenced by the most recent manufacturing output data.

The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 2.0755.

The ‘Aussie’ (AUD) dived across the board as the difficult situation with China’s stock market is weighing on demand for trading partner currencies. The ongoing situation in Greece is also having a detrimental affect on market sentiment. Additionally, weak commodity prices and speculation that Thursday’s Australian Jobs data will produce poor results are aiding ‘Aussie’ depreciation. The Reserve Bank of Australia (RBA) will welcome the domestic assets devaluation, however, given their lack of tools to combat overvaluation without stoking the Sydney housing bubble.

The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending within the range of 2.0731 to 2.0930.

Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Dive as Greek Woes Weighs on UK Exports

The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate dived by around -1.15% on Wednesday morning.

In addition to the high-valued domestic asset weighing on British economic growth, troubles across the pond are also having a detrimental effect. The poor performance in Manufacturing Output showed that demand for British product from Europe has reduced significantly amid uncertainty and tensions in Greece. It has caused many to speculate that the BoE’s reassurances that the contagion from a Grexit would be limited could be premature and misguided.

The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.2938.

During the Australasian session the ‘Kiwi’ (NZD) dived versus its major peers with Greek geopolitics and China’s stock market issues weighing on demand for the risk-correlated asset. However, the New Zealand Dollar has since recovered much of its losses after Greece’s proposal submission was extended. Of all the high-yielding currencies, the ‘Kiwi’ is particularly attractive because it is not as badly affected by weakness in the commodities market compared with its South Pacific neighbour. Furthermore, although the Reserve bank of New Zealand (RBNZ) are flirting with further policy easing, the current interest rate still offers better returns than many majors, including its Oceanic counterpart.

The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending within the range of 2.2924 to 2.0930.