The Pound Sterling (GBP) has fallen by -0.4% against the Australian Dollar (GBP/AUD) today, thanks in part to the International Monetary Fund’s (IMF) estimation that while a global slowdown is likely, China (and by extension, Australia) will come out of the turmoil fairly well off.
Impending UK Data to Decide GBP/AUD Leader until the Afternoon
The much-anticipated Australian AiG Performance of Construction Index for September fell from 53.8 points to 51.9 yesterday, though the IMF’s positive predictions for Australia have triggered an ‘Aussie’ (AUD) rally in spite of this. The next affecter of the pairing will be the UK Industrial and Manufacturing Production results for August, which have had mixed predictions assigned to them. Later on, the UK GDP Estimate for September will come in from the NIESR.
Earlier…
The Pound Sterling (GBP) has fallen by -0.4% against the Australian Dollar (GBP/AUD) today, owing to both yesterday’s successful TPP agreement and today’s freeze applied by the Reserve Bank of Australia (RBA) to the Australian interest rate. RBA Governor Glenn Stevens stated: ‘Equity market volatility has continued, but the functioning of financial markets generally has not, to date, been impaired’.
‘Aussie’ set to Decide Pairing’s Future Direction as Only UK Data is Classed ‘Low-Impact’
For the rest of the day, major GBP/AUD movement is only expected to come a lot later on with the release of the Australian AiG Performance of Construction Index for September; no predictions have currently been made, but given that Australian economists are still looking for a sector to replace the ailing mining industry, this result will likely be closely scrutinised by investors in the Australian economy.
Earlier…
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has crashed today, just one of many major losses seen by the Pound (GBP). This has primarily come from the only major UK results of the day proving to be a major disappointment.
GBP/AUD Exchange Rate News: Services Slowdown Scares away Sterling Confidence Today
The Pound Sterling (GBP) has fallen by -0.6% against the Australian Dollar (GBP/AUD) today and against other rivals the Pound has fared even worse. The most notable losses for Sterling today have been by -0.9% against the South African Rand (GBP/ZAR) and the Russian Ruble (GBP/RUB), -1% against the New Zealand Dollar (GBP/NZD) and more than -1.1% against the Mexican Peso (GBP/MXN) and the Israeli New Shekel (GBP/ILS). The only gain worth noting has been by 0.5% against the Japanese Yen (GBP/JPY).
One of the reasons for this spectacular drop-off in Sterling’s performance has been the fact that the one of the only UK results of the day, the UK Services PMI for September, has fallen to a lower score than predicted. The result came in at 53.3, down from 55.6; a smaller decline to 55.3 had been forecast. As with seasonal jobs, it is worth taking this result in the context of seasonal circumstances: the British Summer has effectively drawn to a close now.
Prospect of Final TPP Deal Closure Boosts AUD/GBP Exchange Rate considerably Today
The Australian Dollar (AUD) has had a virtually opposite showing to the Pound (GBP) today, rising against most competitors. Such advances have included over 0.5% against the Chinese Yuan (AUD/CNY) and the Pound Sterling (AUD/GBP) and 0.9% against the US Dollar (AUD/USD). The only real loss for the ‘Aussie’ has been by -0.2% against the New Zealand Dollar (AUD/NZD).
As with the New Zealand Dollar (NZD), however, the Australian Dollar has been supported immensely recently by the news that the 5-year-in-the-making Trans-Pacific Partnership (TPP) may be closed this week. The deal offers a number of notable benefits for the 12 countries involved, but negotiations have previously stalled due to disagreements. In addition to being supported by this news, the ‘Aussie’ has also benefitted from a spike in the price of copper today.
GBP/AUD Exchange Rate Forecast: RBA Interest Rate Decision on the Horizon, No Change Predicted
The next major occurrence in the GBP/AUD pairing will come from Down Under tomorrow, with the announcement of the Reserve Bank of Australia’s (RBA) interest rate decision for October. As of writing, no change from the current 2% cash rate has been forecast. Given RBA Governor Glenn Steven’s recent sentiments with regard to RBA policy, it remains a possibility that this deep-freeze will continue for some time, as Stevens has voiced his doubt over the reliance on rate cuts and hikes to keep the entire country’s growth in check.
Current GBP, AUD Exchange Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.1423 and the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4670 today.
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