Pound Sterling to Australian Dollar (GBP/AUD) Forecast to Trend at Best Exchange Rate for 71-Months after Australian Retail Sales Slump
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate rallied by around 1.62% on Friday morning.
Mixed results from Thursday’s British economic data caused the Pound to fluctuate versus its currency rivals. House Prices declined on the month in June and failed to meet with expected annual growth. The decline in house prices was a surprise to analysts who felt it was a blip in an otherwise growing sector. Conversely, British construction output bettered estimates in June thanks to construction outfits making up for lost ground after the general election concluded.
Friday has seen the Pound gain versus most of its peers. The uptrend can be linked to better-than-anticipated services growth, particularly significant for the UK given that services account for a large portion of British gross domestic product. The Markit/CIPS UK PMI was forecast to edge higher from 56.5 to 57.5, but the actual result reached 58.5 in June.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 2.0768 today.
In complete contrast, the ‘Aussie’ (AUD) dived versus its major competitors on Friday thanks to mixed domestic datas, poor data out of China and damp market sentiment. Whilst the AiG Performance of Services Index increased from 49.6 to 51.2 in June, breaking through the 50 barrier which separates growth from contraction, retail sales slumped in May. On the month, May’s Retail Sales came in at 0.3%; missing the median market forecast 0.5% sales increase.
In addition to mixed data weighing on demand for the Oceanic currency, data out of China (Australia’s biggest trading partner) failed to impress. China’s Services PMI dropped from 53.5 to 51.8 in June and the Composite PMI dropped from 51.2 to 50.6.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending within the range of 2.0410 – 2.0710.
Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Strengthen on UK Services Growth
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate advanced by around 0.65% on Friday.
Commenting on the British Services PMI, Chief Economist at Markit Chris Williamson stated; ‘While uncertainty caused by the Greek debt crisis rules out any imminent hike in interest rates, the post-election rebound in service sector business activity adds to the likelihood of the Bank of England (BoE) starting to nudge rates higher later this year. The survey data are indicating an acceleration of economic growth to 0.5% in the second quarter, up from 0.4% in the first three months of the year.’
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.3372.
The New Zealand Dollar tracked its South Pacific neighbour lower overnight as the ‘Kiwi’ responded to the stunted services growth in China. Adding to the ‘Kiwi’ (NZD) downtrend is generally damp market sentiment ahead of Sunday’s Greek referendum, in which the Hellenic nation chooses whether or not to accept austerity in return for bailout funds. A complete absence of domestic data should see the Oceanic currency holding losses versus its peers for the remainder of Friday’s European session.
The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending within the range of 2.3187 – 2.3380.