The Pound Sterling (GBP) has recorded a loss of -0.3% against the Australian Dollar (GBP/AUD) today after the UK trade deficit widened due to further negative Trade Balances for July.
High Value Data Releases Tomorrow leave GBP/AUD Conversion Rate Movement in Uncertain Area
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate will be most strongly affected in the near future by the Australian Unemployment Rate and Employment Change figures for August tomorrow, as well as the Bank of England (BoE) interest rate decision. A fractional drop has been predicted for the Unemployment Rate, while a small rise is expected in the number of employed persons. No change is expected in the current UK interest rate of 0.50%, so speculators will instead be looking out for hawkish remarks or statements from BoE policymakers.
Earlier…
The Pound Sterling (GBP) has dropped by -0.2% against the Australian Dollar (GBP/AUD) today; this comes even though a number of Australian data releases this morning were not exactly positive.
UK Trade Balance Figures may Widen Trade Deficit, Current GBP/AUD Disparity
The Pound Sterling’s (GBP) drop against the Australian Dollar (GBP/AUD) today may be set to increase shortly after the UK Trade Balance figures for July are released. Nothing beneficial to the UK has been predicted in the results, therefore a further loss against the ‘Aussie’ (AUD) remains a distinct possibility.
The Pound’s decline today can be attributed to the diminished impact from the Glencore announcement two days ago and a slight rise in the current price of iron ore. The ‘Aussie’ certainly hasn’t been helped by the Westpac Consumer Confidence score for September, which has fallen by -5.6% today.
Earlier…
Two key mining-related factors have bolstered the Pound (GBP) and Australian Dollar (AUD) today, although the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has gained overall.
GBP/AUD Exchange Rate News: Glencore Selloff Prompts Second Rally Day for Super Sterling
In a continuation of yesterday’s unexpected uptrend for the Pound (GBP), the British currency has risen across the board again today following the news that trading and mining commodities giant Glencore will be selling assets and taking other easing measures to reduce its current mountain of debt. The announcement triggered an upsurge in both the FTSE 100’s valuations and in demand for the Pound. In addition to this, the Confederation of British Industry (CBI) has offered encouraging words for the UK economy today, calling expectations for the next three months ‘buoyant’.
The Pound has risen against the Australian Dollar (GBP/AUD) by 0.6% today and has seen similar gains of over 0.6% against the Hong Kong Dollar (GBP/HKD), the Swiss Franc (GBP/CHF), the Chinese Yuan (GBP/CNY), the Thai Baht (GBP/THB) and the Japanese Yen (GBP/JPY).
‘Aussie’ Loses Out in AUD/GBP Exchange Rate but Posts Encouraging Gains Elsewhere
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate has dropped by -0.2% today, one of the only losses for the ‘Aussie’ (AUD). Elsewhere, the antipodean currency has risen by over 0.3% against the Canadian Dollar (AUD/CAD), the Euro (AUD/EUR) and the US Dollar (AUD/USD) and by a greater 0.9% against the Chinese Yuan (AUD/CNY).
This has been largely caused by a return of demand from China for Australia’s iron ore following the reopening of many factories in the area of Beijing which had been shut down for a commemorative parade. The price of iron ore has also been beneficial to the ‘Aussie’ today, rising from a low of $53.00 on August 30th to over $55.00 today. This show of confidence in the ‘Aussie’ goes against recent domestic data; the Australian NAB Business Confidence Index for August showed a drop from 4 points to 1 today.
GBP/AUD Exchange Rate Forecast: No Major Shifts Predicted Until UK and Australian Economic Releases Tomorrow
Neither the Pound Sterling (GBP) nor the Australian Dollar (AUD) have any more data releases today, so tomorrow’s batches of results will decide the next stage of the pairing’s movement this week. The Australian Investment and Loans data for July is due in first, although no predictions have been made.
The UK Industrial Production and Trade Balance results are out later on, but unfortunately pessimistic predictions have been made for the outcomes of both of these publications.
Current GBP, AUD Exchange Rates
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.2023 and the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4541 today.
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