Australian Dollar to Pound Sterling (AUD/GBP) Exchange Rate Forecast to Edge Lower after RBS Posts Surprise Quarterly Profit

  • Posted on

Australian Dollar (AUD)

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate declined by around -0.3% during Thursday’s European session.

Australian Dollar (AUD) Exchange Rate Forecast to Edge Lower against the British Pound (GBP) Despite Rising Iron Ore Prices

Over the course of Thursday’s Australasian session, the Australian Dollar dived versus its currency rivals. The depreciation was sparked by data which showed Australian Building Approvals for June came in at 8.6% on the year; significantly lower than the median market forecast 19.5% growth in approvals. This was a particularly worrying ecostat given that the Sydney housing bubble is pricing people out of the market. The Reserve Bank of Australia (RBA) will seriously have to consider tackling the amount of houses being built or policy easing could lead to serious issues in the housing market.

During Thursday’s European session, however, the ‘Aussie’ (AUD) recovered much of its losses. This is due to the third consecutive days rise in iron ore prices. ‘Speculation steel mills are purchasing iron ore at ports has supported futures and physical markets,’ said Huang Huiwen, a Shanghai-based analyst at Shanghai Cifco Futures Co.

However, some analysts predict that the rise in iron ore prices will be short-lived. ‘The rebound will be short-term and lower prices are expected, we still have an oversupply market,’ Kelly Teoh, an iron ore derivatives broker at Clarkson in Singapore, said on Wednesday before the price data. ‘It seemed there’s still some tightness in the physical spot cargoes.’

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is currently trending in the region of 0.4663.

Pound Sterling (GBP) Exchange Rate Forecast to Strengthen against the ‘Aussie’ (AUD) on British Personal Insolvency

In response to a survey which showed that British personal insolvency dropped to its lowest level in nearly 10 years, the Pound strengthened versus its currency rivals during Thursday’s European session. ‘It has taken a long time, but with wages outstripping inflation again, people are finding it easier to repay their debts without resorting to insolvency procedures,’ said Phillip Sykes, president of R3, the insolvency trade body.

Additional Sterling gains can be attributed to a surprise quarterly profit posted by Royal Bank of Scotland (RBS). The British government owns RBS shares so the profit increase could see greater returns to the UK government when they come to sell their shares within the next five years.

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending within the range of 0.4644 to 0.4692 during Thursday’s European session.

« Previous Story

Australian Dollar to Pound Sterling (AUD/GBP) Exchange Rate Rises after Chinese Government Intervention

Next Story »

Australian Dollar to Pound Sterling (AUD/GBP) Exchange Rate Soars after RBA Freeze Australian Interest Rate at 2%

Disclaimer: 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. 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. 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.