The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate advanced by around 0.29% during Tuesday’s European session.
Although the situation in Greece is having a marked detrimental impact on trader risk-appetite, the ‘Aussie’ (AUD) strengthened versus many of its peers. The appreciation is the result of hawkish comments from Reserve Bank of Australia (RBA) Governor Glenn Stevens. Stevens stated that there was no need for the RBA to loosen monetary policy to combat overvaluation at this time because he believes that the Australian Dollar will weaken naturally over time.
The ‘Aussie’ also gained thanks to gold prices holding a comparatively strong position with the situation in Greece seeing amplified demand for safe-haven assets.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is currently trending in the region of 0.4891.
The Pound slumped versus many of its peers on Monday after Bank of England (BoE) Chief Economist Andy Haldane stated that a benchmark rate cut was just as likely as a rate hike. However, the British asset managed to recover some of its losses during Tuesday’s European session after domestic data printed positively.
June’s Consumer Confidence Survey was forecast to rise from 1 to 2, but the actual result climbed to 7. The spike in confidence is likely to be the result of accelerated wage growth coupled with ultra-low interest rates. In addition, the final figure for first-quarter annual Gross Domestic Product was upwardly revised from 2.45 to 2.9%.
The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate dropped to a low of 0.4867 during Tuesday’s European session.
Although the ‘Aussie’ is holding gains against the British asset, the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is likely to eventually decline as the geopolitical upheaval in Europe is constantly weighing on demand for high-yielding assets. During Wednesday’s Australasian session, the AiG Performance of Manufacturing Index has the potential to provoke ‘Aussie’ volatility.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate climbed to a high of 0.4900 during Tuesday’s European session.
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