The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate has fallen slightly today on account of the Pound’s (GBP) major uptrend, but the ‘Aussie’ (AUD) has performed well elsewhere.
The Australian Dollar (AUD) has declined somewhat against the Pound Sterling today, with the AUD/GBP pairing trending narrowly. In other pairings, the ‘Aussie’ has performed admirably, rising by over 0.4% against the Canadian Dollar (AUD/CAD), the Chinese Yuan (AUD/CNY), the Euro (AUD/EUR), the US Dollar (AUD/USD) and the New Zealand Dollar (AUD/NZD).
These gains can be largely attributed to two factors. The first is the fact that demand for Australian iron ore has spiked today after many of China’s most productive steel mills reopened after the passing of a recent grand commemorative parade in Beijing. The mills were closed to restore blue skies over the capital for the event, but now that the parade has passed, Chinese demand for iron ore has returned in force (as has the vast smog cloud).
The second factor is the Australian Performance of Construction Index for August posting a distinct rise from 47.1 to 53.8, a major improvement and a climb out of a contraction as well.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has risen by 0.2% today, just one of many advances for Sterling (GBP) against its competitors. This is something of an irregular occurrence, given that the final piece of UK data last week was a very minor release and nothing new was scheduled for release today.
The Pound’s astronomic gains have been caused by the debt-busting measures of commodities giant Glencore, which has introduced plans to reduce its current £19.8bn debt mountain by selling off assets, suspending unprofitable operations and ceasing dividend pay. The move sent the FTSE 100 up by 0.4% and subsequently raised demand for Sterling considerably.
The Pound has risen by 0.9% against the New Zealand Dollar (GBP/NZD), the Swiss Franc (GBP/CHF) and the Japanese Yen (GBP/JPY) and has advanced by more than 1% against the Thai Baht (GBP/THB), the Turkish Lira (GBP/TRY) and the South African Rand (GBP/ZAR).
Australia has more influential data scheduled for release tomorrow than the UK, including the Australian NAB Business Conditions and Confidence scores for August. No estimates have been made for the results, but as the previous figures came in single digits, anything that breaches 10 or 20 points is likely to boost the ‘Aussie’ considerably.
However, a number of Chinese Trade Balance and Goods figures are also out tomorrow, and given the close relationship between the Australian and Chinese economies, any major declines are likely to widen the current GBP/AUD disparity.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4547 and the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.1998 today.
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