Australian Dollar Pound Sterling Exchange Rate to be Shifted by UK Borrowing Stats Today
Australian Dollar exchange rates rose across the board during Tuesday’s trading session, thanks to encouraging signs for future Reserve Bank of Australia (RBA) monetary policy in the September meeting minutes.
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The Pound had a far less desirable day of trading, falling heavily against most of its peers due to unresolved concerns about how UK-EU ‘Brexit’ negotiations could unfold.
Australian Dollar News: ‘No Immediate RBA Rate Cut’, Say Central Bank Minutes
The Australian Dollar was able to record significant gains against the Pound and most of its other usual rivals on Tuesday, having been boosted considerably by the details of September’s RBA minutes. As a result the AUD GBP rose towards a monthly high, trending around 0.58.
Covering the last policy meeting under former Governor Glenn Stevens, the minutes pointed to a reluctance to touch interest rates in the near-term, stating;
‘the Board judged the current stance of monetary policy was consistent with sustainable growth in the Australian economy’.
Responding to the data, Capital Economics Chief Australian Economist Paul Dales said;
‘The RBA has not changed its view since cutting rates to 1.5% in August, which implies it sees little need to cut interest rates again’.
Pound Sterling News: GBP Losses Widespread after Czech Official Blasts ‘Brexit’ Talks
The Pound fared significantly worse than the Australian Dollar on Tuesday, diving across the board in response to the latest developments surrounding the EU Referendum negotiations.
While concerns had already been circulating about whether the UK would be able to limit immigration but keep single market access, Czech Republic State Secretary for EU Affairs Tomas Prouza blasted any hope out of the water by stating;
‘I see exactly zero chance of success if the UK wants to create first and second-class citizens in Europe or if it tries to separate the four basic freedoms of movement’.
AUD GBP Forecast: Will UK Deficit Expansion Further Weaken Sterling Today?
Australian domestic data to watch out for this morning will consist of the Westpac leading index for August, as well as a speech from RBA official Alexandra Heath.
From the UK, the more impactful public sector net borrowing result for August is due over the afternoon. This has been forecast to show a deficit expansion to -8.4bn, something that conflicts with Prime Minister Theresa May’s plans to keep the national deficit in check.
Recent AUD GBP Exchange Rates
At the time of writing, the Australian Dollar Pound Sterling (AUD GBP) exchange rate was trending in the region of 0.5828 and the Pound Sterling Australian Dollar (GBP AUD) exchange rate was trending in the region of 1.7165.