Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast to Strengthen ahead of FOMC Rate Decision
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate advanced by around 0.7% on Wednesday afternoon.
British economic data bettered estimates on Wednesday which caused the Pound to trend higher versus many of its currency competitors. June’s Net Consumer Credit, Net Lending Securities on Dwellings and Mortgage Approvals all eclipsed the respective median market forecasts. The Pound’s uptrend has been somewhat sluggish, however, after it was revealed that British lending to non-financial businesses declined in June by the largest amount since records began over four years ago.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 2.1395.
With fears mounting that China’s economic slowdown will have a detrimental impact on the currency market; trader risk appetite has dampened considerably. The lack of demand for high-yielding assets has caused the Australian Dollar to soften versus the majority of its most traded currency rivals. Additional losses can be attributed to speculation that Federal Reserve officials will make hawkish statements following the Federal Open Market Committee (FOMC) meeting due to conclude later this evening.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending within the range of 2.1237 to 2.1425 during Wednesday’s European session.
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Advance on Dovish RBNZ
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate gained by around 0.7% on Wednesday afternoon.
In response to Wednesday’s British economic data, Bloomberg journalist Fergal O’Brien stated; ‘The figures chime with recent surveys showing renewed strength in the housing market following the May general election as employment prospects improve, wages increase and households take advantage of record-low mortgage rates. By contrast, lending to non-financial businesses fell by 5.5 billion Pounds ($8.6 billion) last month, the biggest drop since records began in May 2011, the Bank of England (BoE) said.’
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.3418.
The New Zealand Dollar softened versus its major peers for similar reasons to its Oceanic counterpart. In addition, Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler stated that the economy was growing below its potential in the face of crashing commodity prices. Therefore the central bank is likely to cut the cash rate further in 2015. ‘Some further monetary policy easing is likely to be required to maintain New Zealand’s economic growth around its potential, and return CPI inflation to its medium-term target level,’ Wheeler said in a speech to a business group. The ‘Kiwi’ (NZD) is holding gains over is South Pacific neighbour, however, as traders believe that the RBNZ official cash rate will still be higher than the Reserve Bank of Australia (RBA) benchmark interest rate.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending within the range of 2.3225 to 2.3452 during Wednesday’s European session.
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