The Pound Sterling (GBP) has advanced by 0.7% against the Australian Dollar (GBP/AUD) today, something that has come after the Australian CB Leading Index fell to -0.4% and the Westpac Leading Index rose by a miserable 0.1%.
UK Borrowing Figures Ahead, Same Reduced Amounts Predicted
The next influencer in the GBP/AUD pairing will be the UK’s governmental borrowing results; the forecasts have not changed since Monday therefore small reductions in the amount borrowed compared to previous results are expected.
Earlier…
The Pound Sterling (GBP) has declined slightly against the Australian Dollar (GBP/AUD) today due to an apparently unsolvable problem developing in the UK steel industry.
Australian Conference Board Indices to Decide Next GBP/AUD Movement ahead of UK Debt Statistics
The day’s most notable influencer on the GBP/AUD pairing failed to cause much change today, owing to the US results alternately rising and falling in approximately equal measure – this devalued the US Dollar (USD) slightly and allowed the Australian Dollar (AUD) to proceed unchecked against the Pound (GBP) today.
The Australian Westpac Index remains the next big announcement for the Pound and the Australian Dollar, but more far-reaching problems seem to be present within the UK economy, principally with the steel industry. Speaking today, Foreign Secretary Phillip Hammond made the situation seem untenable, bemoaning that ‘We can’t simply build a wall around the UK’.
Earlier…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate dropped off today due to a worsening situation in the UK steel industry; the week’s visit from Chinese President Xi Jinping may help or hinder this current situation.
GBP/AUD Exchange Rate News: UK Steel Meltdown Compounded by Chinese Visit Today
The Pound Sterling (GBP) has dropped by -0.3% against the Australian Dollar (GBP/AUD) today, just one of a number of losses for the UK currency. Other notable declines have included -0.3% against the New Zealand Dollar (GBP/NZD) and -0.6% against the Swiss Franc (GBP/CHF). Gains for Sterling have been minor, mostly comprising of 0.2% against the Israeli New Shekel (GBP/ILS), the Indian Rupee (GBP/INR) and the Mexican Peso (GBP/MXN).
The Pound’s poor performance today can be partially attributed to the news that over 1,000 jobs will be lost at the Tata Steel mill, just one of a number of high-profile hits to the UK’s historic steel industry in the past weeks. The move is due to the apparent unprofitability of steel produced in the UK, something brought about by nations such as China flooding the market with undercutting steel.
The news came at a particularly bad time for the UK government as at the same time that the number of job losses were being announced, Chinese President Jinping was being welcomed on the first day of his four-day state visit to the UK.
RBA Minutes offer Reassurance to Investors and Raise AUD/GBP Exchange Rate Today
The Australian Dollar (AUD) has had an opposite performance to the Pound (GBP) today, rising by 0.3% against Sterling (AUD/GBP) and seeing similar gains of 0.2% against the Chinese Yuan (AUD/CNY), 0.3% against the Canadian Dollar (AUD/CAD) and 0.4% against the US Dollar (AUD/USD).
The ‘Aussie’ has mostly been supported today by the release of the Reserve Bank of Australia (RBA) October Meeting Minutes; the RBA stated that while housing oversupplies and property risks remain prominent issues to the Australian economy, the mining industry’s contraction was not having as detrimental an effect as had first been predicted.
GBP/AUD Exchange Rate Forecast to Fluctuate on US Data ahead of Westpac Indices Tomorrow
The next UK data is not due until tomorrow morning, therefore movement in the GBP/AUD pairing is likely to come from US and Australian results before then. The US Housing Starts and Building Permits results for September are expected to respectively rise and fall; if accurate, this may not actually trigger noticeable movement for the ‘Aussie’ (AUD). However, tomorrow’s early Australian data is more likely to have a discernible impact – the Westpac Leading Index for September is due in, although at the time of writing no forecasts had been made.
Current GBP, AUD Exchange Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.1256 and the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4706 today.
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