Australian Dollar Pound (AUD GBP) Rate Slumps as Annualised Inflation Hits 17-Year Low

Pound Sterling (GBP)

The ‘Aussie’ has been a poor prospect for investors recently, with losses stemming from the recent outcome of the nation’s Q2 inflation rate results.

For the Pound, losses have also been prevalent, with a significant ramp-up in concern about the state of the post-‘Brexit’ economy holding the UK currency back against its peers.

Australian Economic News: Australian Dollar Dives on 17-Year Low in Inflation

The value of the Australian Dollar has taken a clear dive recently, on account of the latest inflation rate stats out of the nation.

For the second quarter, annualised inflation rose by 1% on the year, down from 1.3% and a slight difference from the predicted 1.4% outcome.

Notably, this represents a 17-year low for inflation growth in the nation, something that has heightened tensions about next week’s highly-impactful Reserve Bank of Australia (RBA) interest rate decision.

In gloomy comments on the recent data, Goldman Sachs economists said;

‘Headline inflation is running at the weakest in 18 years and is decelerating. Underlying inflation, defined as the average of the trimmed mean and the weighted median measures, is running at the equal weakest since the data became available 14 years ago, with a broad downtrend in annual inflation still identifiable’.

Pound Sterling Slides as Contrary Ecostats Weaken GBP’s Appeal

The Pound has lost out notably against its peers recently, having bounced back by a small amount but nonetheless remained down against most of its usual rivals.

In an unusual development, the trigger for the Pound’s initial losses was actually a piece of positive data, consisting of the Q2 preliminary GDP growth rate result.

On the quarter, a rise from 0.4% to 0.6% was recorded, while on the year, an increase from 2% to 2.2% was seen.

In spite of this apparent good news, the Pound’s drop-off can be attributed to the fact that the Q2 period only stretches up to June, not Q3’s July onward stretch, which comes after the EU Referendum result, when most market uncertainties are expected to manifest.

In a later and more understandable blow to the Pound, the Confederation of British Industry (CBI) total reported sales result for July fell from 14 to -11, as a clearer sign of how immediately the Referendum result has negatively effected the UK’s short-term economic prospects.

Australian Dollars (AUD)

AUD GBP Exchange Rate Forecast: Australian Credit Stats due on Friday along with UK Confidence Score

The next major Australian data will come on the last day of the week, when the nation’s private sector credit printing for June is expected to come in during the morning. As of writing, the only forecast made has been on the month, where a shift from 0.4% to 0.49% is expected.

For the UK, the week will close with the announcement of the GfK consumer confidence printing for July, which is pessimistically expected to fall from -1 to -5.

Recent AUD GBP Exchange Rates

The Australian Dollar Pound (AUD GBP) exchange rate has been trending in the region of 0.5691 and the Pound Australian Dollar (GBP AUD) exchange rate has been trending in the region of 1.7578 today.


Oliver has developed an expert understanding of the Forex market and the main drivers behind currency movement since entering the financial sector. He writes daily articles covering the latest shifts in currency for a range of sources online, as well as providing potential forecasts of future movement. This gives his followers all the information they require to protect their international money transfers from market exposure and currency risk. - View all posts by Oliver Meredew

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