The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate jumped in Tuesday’s European session as the ‘Aussie’ ran rings around a host of other major currency peers following a Reserve Bank of Australia (RBA) interest rate announcement.
The Australian Dollar jumped when the RBA defied investors’ forecasts for another cut to the official cash rate, instead opting to keep the benchmark stable at 2.25%.
However, concerns have been raised over spikes in the Australian Dollar exchange rate just moments prior to RBA announcements. For the third consecutive month, the ‘Aussie’ has swung in a favourable way (for the investor) just ten seconds ahead of the central bank interest rate statement, lending experts to suggest that informed trading could be taking place.
The occurrences carry echoes of the market fluctuations seen in 2013/14 after the Australian Bureau of Statistics caught two employees stealing data to trade on the results. Furthermore, last year saw eyebrows raised over employment data that appeared to be falsified.
Meanwhile, the Pound experienced movement after the Bank of England (BoE) suggested that the fallout of prolonged Greek negotiations or a Grexit could wreak havoc with UK banks.
The central bank therefore urged institutions to begin forming plans for a loss of the nation from the currency bloc.
The BoE policymakers stated: ‘The realisation of any of the global risks that the Committee had identified could trigger abrupt shifts in global risk appetite. This might, in turn lead to a sudden reprisal of underlying vulnerabilities in highly indebted economies, or sharp adjustments in financial markets.’
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate could be in for fluctuations on Wednesday with the release of the ANZ Roy Morgan Weekly Consumer Confidence stat, which will later be followed by UK New Car Registrations.
Thursday’s session is likely to see some major movement with the AiG Performance of Construction Index and Bank of England interest rate decision both out.
Although the BoE isn’t expected to make any interest rate adjustments at the moment, the Pound could still experience movement around the announcement. Furthermore, the Pound may also be sensitive to any central bank announcements on the topic of rate hikes.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is trading at 1.9453. The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is trending in the region of 0.5142.
Disclaimer: Currency-Converter.com.au and its data provider, TorFX, make no claims regarding the validity or exactness of the information provided in on this site and will not be held liable for any use, interpretation, or other implementation of the information provided. Currency-converter.com.au make no warranties, express or implied, as to results to be obtained from use of such information, and make no express or implied warranties of condition, quality, performance, merchantability or fitness for a particular purpose or use. Currency-converter.com.au shall not have any liability for the accuracy of the information contained in the services provided or ommissions there in which are made available on a free, as-is basis. None of the aforementioned parties shall be liable for any third party claims or losses of any nature, including, but not limited to, lost profits, punitive, consequential, special, incidental, indirect or similar damages even if advised of the possibility of such damages. Rates offered are interbank rates and may not be the same as offered by your financial institution, and do not include commissions. Rates shown on this site will vary from those provided by TorFX or other providers linked to from this site.