GBP/AUD Conversion Rate Climbs as UK Seen as One of the Best Performing Economies in 2015
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate advanced by around 0.6% on Wednesday afternoon.
Despite the fact that British economic growth in the third-quarter came in below expectations, Pound Sterling rallied versus its 16 most traded currency rivals on Wednesday. The appreciation can be linked to thin trading volumes and traders readjusting Sterling trade weighting following the significant depreciation yesterday in the aftermath of less-than-ideal government spending data. British third-quarter Gross Domestic Product was predicted to advance by 2.3% on the year, but the actual result only reached 2.1%. However, this growth is still seen as robust and the UK economy is named amongst the best performing in 2015.
IHS Global Insight economist Howard Archer stated; ‘Growth was held back in the third quarter by net trade which knocked 1.0 percentage points off growth. This fuels concern that UK growth is far too reliant on domestic demand, even allowing for the fact that the third quarter trade performance was partly a payback for a strong second quarter. We expect GDP growth to improve to 0.6% quarter-on-quarter in the fourth quarter. However, because of the downward revisions to GDP growth in the second and third quarters, we will need to trim our projection of overall GDP growth in 2015 from 2.4% to 2.2%.’
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 2.0616.
AUD/GBP Conversion Rate Predicted to Hold Losses ahead of Conference Board Leading Index
In response to US Dollar strength and soft demand for high-yielding assets, the Australian Dollar declined versus many of its peers on Wednesday. The ‘Aussie’ (AUD) is still holding a comparatively strong position versus most of its peers, however, after additional stimulus measures from the Bank of Japan (BOJ) yesterday saw heightened demand for Asia-Pacific assets. The ‘Aussie’ has seen large daily losses today, however, as the readjusting of positions took the currency to more appropriate levels.
Positive US data has weighed on demand for the Oceanic asset today amid speculation that the Federal Reserve will be more aggressive in its approach to tightening policy than had been originally expected. The improvement in US New Home Sales and the University of Michigan Consumer Confidence data, plus a better-than-expected Durable Goods Orders report, caused heightened demand for the US Dollar which, in turn, saw dampened demand for the high-yielding Australian Dollar.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate dropped to a low of 2.0661 during Wednesday’s European session.
Pound Sterling to Australian Dollar (GBP/AUD) Exchange Rate Forecast: BBA Loans for House Purchase to Provoke Volatility
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is likely to see changes in response to Australia’s Conference Board Leading Index, a composite index used to forecast short to mid-term growth in the Australian economy, and the UK BBA Loans for House Purchase data. Thursday’s US labour market data may also provoke market volatility and changes for the GBP/AUD exchange rate.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate reached a high of 2.0661 during Wednesday’s European session.
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