GBP to AUD Exchange Rate Rallies; British Economic Data Reverses Bearish Behaviour
With very little by way of economic data to drive change for Sterling, the Pound continued a bearish run throughout the course of the week. However, Friday’s economic data publications have gone some way to recovering the losses and the Pound has strengthened across the board as a result.
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The Past week has seen the Pound struggle versus the majority of its major peers after there were very few domestic data publications, of influential economic weighting, to provide a cushion for the downwards trend.
Sterling had also experienced losses from the increasingly poor Eurozone data publications. The intimate trading relationship between the UK and the Eurozone means that negative data publications have a mutually detrimental effect.
Traders had also been put off the Pound amidst the ongoing Scottish Referendum debate. The debate seems to be no closer to resolution and the citizens themselves seem undecided on the correct course of action.
The Australian Dollar has had a contrasting week to that of the Pounds. Having been one of the few currencies to avoid the damage from a bullish US Dollar the ‘Aussie’ (AUD) rallied on a succession of positive domestic data publications.
Australian weekly consumer confidence out performed expectations, and second quarter Private Capital Expenditure printed at 1.1% despite having only been forecast to retract by -0.9%.
The Pound Sterling to Australian Dollar exchange rate has hit a low today of 1.7717.
Friday has seen a reversal in fortune for Sterling with economic data publications posting results that were better-than-expected.
The nationwide House Px showed 0.8% growth in August despite having only been forecast to increase by 0.1%. The year-on-year non-seasonally adjusted Nationwide House Px was forecast to increase by 10.2% having recorded a growth of 10.6% previously. The actual data revealed a growth of 11.0%.
Consumer confidence has shown a surprising increase considering the negative retail sales data from last week. The GfK Consumer Confidence Survey was forecast to decline by -1 having retracted by -2 previously. The actual result showed a surplus increase to 1.
Sterling has also benefitted from some better-than-anticipated Eurozone domestic data publications on Friday. The Eurozone Unemployment Rate met with forecast figures printing at 11.5%. The year-on-year Core Consumer Price Index has significant weighting economically and as a wider market mover. It was forecast to have equalled the previous figure of 0.8%, but surprised analysts with the actual result printing at 0.9%.
Friday’s Australian economic data is of less consequence in terms of wider market movement. Year-on-year Private Sector Credit stayed faithful to the forecast figure of 5.1%.
With no more data releases pertaining to either the UK or Australia on Friday, the exchange rate is likely to continue to strengthen over the course of the day.
The Pound Sterling to Australian Dollar exchange rate has hit a high today of 1.7756.