The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate declined by around -0.43% on Monday afternoon.
Despite the fact that there has been a distinct absence of British economic data on Monday, the Pound strengthened versus all of its most traded currency rivals. The appreciation is as a result of a report from BDO which stated that UK business costs declined amid low oil prices.
The Australian Dollar, meanwhile, edged higher versus many of its major peers thanks to rising gold prices and positive data out of China. The gains have been minimal, however, with market sentiment dampened amid unknowns regarding Greece’s future in the Eurozone.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is currently trending in the region of 0.5105.
As mentioned above, dampened market sentiment has seen reduced demand for the high-yielding ‘Aussie’ (AUD). However, positive Chinese data and rising gold prices saw the South Pacific asset tick higher versus some of its major peers.
‘Bullion traders said apart from fresh buying by jewellers and retailers at existing levels, a firming global trend where gold rose from a three-month low on speculation of increased demand in China, mainly influenced gold prices,’ stated Business Today.
In addition to damp risk-sentiment weighing on demand for the Australian Dollar, disappointing domestic data had a detrimental impact. ANZ Job Advertisements came in at 0.9% in February, down from the previous figure of 1.2%.
‘While job ads did experience their ninth consecutive monthly increase, the annual pace of growth has eased somewhat in the previous two months, suggesting some loss of momentum,’ said ANZ chief economist Warren Hogan.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate dropped to a low today of 0.5129.
Research by accountancy and services group BDO showed that its inflation index had dropped into deflationary territory, causing business costs to cool amid low oil prices.
Andrea Bishop, audit partner and head of BDO in the south-west and South Wales, said: ‘Businesses are well placed to take advantage of falling costs, to help them to bed in growth. Lower input prices will help entrench the recovery, as consumers gain more spending power. However, the economy still has substantial spare capacity. Spending on infrastructure is one of the most effective ways to push the economy back toward full employment and keep the recovery on track.’
Given the lack of influential data to provoke changes, and with market sentiment significantly dampened, the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is likely to hold losses for the remainder of Monday’s trade.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate advanced to a high today of 0.5129.
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