Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Recoups Losses Despite Chinese Data
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate edged slightly higher during the Australasian session to achieve a high of 1.9035.
However, GBP/AUD gains were limited as Morgan Stanley asserted that the worst of the slide in oil prices is over and Australia’s Private Sector Credit data printed in line with forecasts.
The Australian Dollar also derived modest support from China’s final HSBC manufacturing PMI. The index was positively revised from 49.5 to 49.6 in December. While the gauge remained below the 50 mark separating growth from contraction, the improvement was unexpected. While holding steady against the Pound, the Australian Dollar advanced on the US Dollar.
However, the Australian Dollar to New Zealand Dollar (AUD/NZD) exchange rate fell to a fresh record low.
GBP/AUD Exchange Rate Extends Decline
As the European session progressed and the price of gold recovered, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate extended and consolidated declines, moving to a low of 1.8976 before returning to trade in the region of 1.8989.
The Pound Sterling to Australian Dollar exchange rate lost -0.3% during the European session as gold prices recovered and UK house price growth slowed by the most for 13 months.
GBP/AUD Exchange Rate Slumps to 1.9006
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate hit a low of 1.9006 on Tuesday as investors responded to a number of factors.
On Monday the ‘Aussie’ advanced on almost all of its main currency counterparts as it was reported that the People’s Bank of China had plans to alter its restrictions on bank deposits.
During the Australasian session the Australian Dollar pared some of its gains against peers like the US Dollar as falling oil and gold prices, Greek political concerns and sliding Asian stocks spurred safe-haven demand.
However, gold prices recovered from their biggest decline in a week as stocks faltered, and the Australian Dollar tracked them higher.
In the opinion of industry expert Mark To; ‘Short squeezes could push gold prices higher, but it may not be really sustainable. The market is rather thin at the moment. Gold could fall further next year because of the lack of investment demand.’
The Australian Dollar to US Dollar (AUD/USD) exchange rate hit a low of 0.8119.
UK House Price Growth Slows, Pound Sterling Exchange Rate Fluctuates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate held declines as the Nationwide report confirmed that year-on-year UK house price growth slowed from 8.5% to 7.2% in December.
Month-on-month price gains also eased from 0.3% to 0.2% this month.
This was the slowest pace of house price growth for 13 months and supports the case in favour of the Bank of England (BoE) leaving interest rates on hold for the foreseeable future.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate achieved a high of 1.9099.
Pound Sterling to Australian Dollar Exchange Rate Forecast
During the Australasian session, movement in the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate could be caused by Australia’s Private Sector Credit data.
Economists have forecast a month-on-month figure of 0.5% for November, just down from October’s 0.6%.
Private sector credit is expected to come in at 5.9% on the year, up from October’s annual figure of 5.7%.
China’s final HSBC Manufacturing PMI for December could also have an impact on the Australian Dollar.
It is believed that the gauge of manufacturing will be unrevised from the initial estimate of 49.5.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 1.9015
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is currently trending in the region of 0.5257
The US Dollar to Australian Dollar (USD/AUD) exchange rate is currently trading in the region of 1.2239
The Australian Dollar to US Dollar (AUD/USD) exchange rate is currently trading in the region of 0.8169