British Pound to Australian Dollar (GBP/AUD) Exchange Rate Trends Down from Monthly High
In the early part of the London session the Australian Dollar enjoyed a huge uptrend following positive data from China. However, the ‘Aussie’ (AUD) has since declined on trader risk aversion after geopolitical issues regarding Syria and Israel have mounted exponentially. Despite a relatively dismal set of UK economic data Sterling has made gradual gains over the course of the day against many of its currency peers.
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The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 1.8484.
In the immediate aftermath of the Unionists victory in the Scottish independence referendum Sterling shot up against all sixteen of its major traded currency competitors. The violent upswing presented attractive selling positions and so Sterling softened dramatically on trader profit locking.
With an absence of British data on Monday the Pound continued to decline from the spate of profit buying.
Those invested in the ‘Aussie’ Dollar have had a hard time of it over the past month or so. A declination was initiated by Reserve Bank of Australia Governor Glenn Stevens who blamed economic stagnation on an overvalued Australian Dollar, which in turn has put off foreign investment into local businesses.
An extremely negative Chinese imports report was the next issue to aid the ‘Aussie’ downtrend. The report showed that the supply of raw materials, such as iron ore, far outweighs demand. Data from the US confirmed this notion sparking off declines in commodity prices.
The Pound Sterling to Australian Dollar exchange rate has hit a low today of 1.8348.
Tuesday’s British data left a lot to be desired. The Loans for House Purchase report showed a declination from the previous figure of 42715 to 41588 despite having been forecast to rise to 42913. Public Finances improved upon the previous figure of -7.2 billion, with the actual data hitting 1.6 billon, but failed to meet with the market consensus of 6.0 billion. Public Sector Net Borrowing showed an unwanted increase from -0.5 billion to 10.9 billion. Public Sector Net Borrowing ex interventions also posted an unwanted growth from 0.3 billion to 11.6 billion, although it did come in under the forecast figure of 11.8 billion. Similarly the Public Sector Net Borrowing Central Government report posted an unwanted rise to 3.1 billion from -2.5 billion.
A solitary Australian data publication on Tuesday was far more positive than that of the British data. The ANZ Roy Morgan Weekly Consumer Confidence Index rose from the previous figure of 111.3 to 112.9.
Tuesday’s Chinese data was particularly satisfactory and went some way towards repairing the damage to the Australian Dollar. The HSBC Chinese Manufacturing Purchasing Managers Index was forecast to drop to the 50.0 mark which separates growth from contraction, but the actual data rose from 50.2 to 50.5. The immediate effect of this positive print was to see many of the commodities rebound from the long period of declination.
However, despite the Chinese data giving the Australian Dollar an all important boost, it has since softened again on increased geopolitical tension between Syria and Israel. A report on Tuesday revealed that a Syrian airplane was shot down by an Israeli Patriot missile battery. Syria immediately condemned Israel’s actions as an act of aggression and linked it to the US-led airstrikes against Isis forces in Syria. The threat of war and increased geopolitical tension has seen investors shy away from riskier currencies, such as the ‘Aussie’ Dollar, favouring safe-haven assets like the US Dollar or the Japanese Yen.
The Pound Sterling to Australian Dollar exchange rate has reached a high today of 1.8513.
The British Pound to Australian Dollar (GBP/AUD) exchange rate fell by more than 0.3% overnight even as the Australian Dollar came under pressure from rising risk aversion.
The Australian Dollar continued its downtrend against the US Dollar as the outlook for iron ore prices was slashed, but managed to recover some ground after the Reserve Bank of Australia outlined measures to cool Australia’s patchy housing market. With policy makers asserting their commitment to temper accelerating prices in both Sydney and Melbourne, the Australian Dollar edged slightly higher.
Australia’s Conference Board Leading Index was also shown to have increased by 0.5% in July following a positively revised gain of 0.2% in June.
The British Pound to Australian Dollar exchange rate was little-changed following the release of China’s Westpac-MNI Consumer Sentiment gauge. The measure slipped slightly from 113.3 to 113.2.