Australian Dollar to Pound Sterling (AUD/GBP) Exchange Rate Forecast: AUD Damaged by ‘Slow and Steady’ RBA Approach

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Pound Sterling (GBP)

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate has dropped by -0.4% today, just one of many losses for the ‘Aussie’ (AUD).

AUD/GBP Exchange Rate News: Frozen Interest Rate Accompanies RBA Uncertainty

In addition to falling against the Pound Sterling (AUD/GBP), the Australian Dollar has dropped by over -0.3% against the Canadian Dollar (AUD/CAD), the US Dollar (AUD/USD) and the New Zealand Dollar (AUD/NZD). Worse results of over -0.7% have been seen against the Euro (AUD/EUR) and the Chinese Yuan (AUD/CNY).

This overall decline comes with the news that the Reserve Bank of Australia (RBA) has chosen to freeze the Australian interest rate at 2%. The lack of a cut is attributed to the Australian economy growing steadily, but no rise has been introduced on account of other economic conditions, such as the tumbling price of iron ore and the recent upheaval in the Chinese stock markets. RBA Governor Glenn Stevens offered mixed hopes for the Australian economy, stating that ‘Australia’s terms of trade are falling’ but also adding that ‘Overall, global financial conditions remain very accommodative’.

Pound Sterling to Australian Dollar Exchange Rate Rises as One of Few Bright Spots Today

The Pound Sterling (GBP) has risen by 0.4% against the Australian Dollar (GBP/AUD) today, although on the whole Sterling’s performance has been negative. Losses include falls of -0.4% against the Chinese Yuan (GBP/CNY), -0.7% against the Japanese Yen (GBP/JPY) and -1.4% against the Russian Ruble (GBP/RUB). These were offset slightly by a rise of over 0.5% against the Mexican Peso (GBP/MXN), the South African Rand (GBP/ZAR) and the Norwegian Krone (GBP/NOK).

The Pound’s dismal turnout today has been caused by an overall lack of confidence in the UK economy; while the UK Mortgage Approvals figure for July showed an increase, the Net Consumer Credit for July and Manufacturing PMI for August both declined compared to previous results. Bank of England Governor (BoE) Mark Carney didn’t add to the overall despondency surrounding Sterling over the weekend by having little concrete to say about when and by how much a UK interest rate rise would be.

AUD/GBP Exchange Rate Forecast: Accurate US Predictions and Inaccurate Australian Forecasts may Reverse Pairing Performance

The UK and Australia have no further data releases today, so the next biggest impactor on the AUD/GBP pairing will be the US ISM for Manufacturing in August. Forecasts have been for a fractional decline and anything greater than this will further damage confidence in the ‘Buck’ (USD). Tomorrow, the Australian GDP results for August are due in and if these figures conversely rises against the predicted drop, the ‘Aussie’ (AUD) may yet rise against the Pound Sterling (AUD/GBP).

Current AUD, GBP Exchange Rates

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4617 and the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.1673 today.

About

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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