During the Australasian session the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate rallied in response to China’s upbeat Leading Economic Index.
The Conference Board gauge advanced from a positively revised 299.9 in August to 302.6 in September.
According to economist Andrew Polk; ‘The six-month growth rate of the Leading Economic Index has eased steadily throughout the third quarter, indicating increased downside risks to economic growth in the months ahead. While activity in the property sector stabilized a bit, sharp weakening in demand for both bank credit and real estate point to sluggish private investment in the last quarter of 2014. Recent developments, therefore, confirm our long-term view of a soft fall of the economy as we reported earlier this week’.
The Australian Dollar to Pound Sterling exchange rate was little changed following the release of the UK’s third quarter growth data.
As expected by economists, the UK economy expanded by 0.7% in the third quarter of the year – down from expansion of 0.9% in the second quarter.
While the UK is still outperforming nations like Germany and France, it appears that the rapid acceleration in output witnessed in 2013 is easing off.
Next week several reports have the potential to trigger AUD/GBP movement, including the nation’s New Home Sales report.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is currently trending in the region of 0.5483.
At the close of a fairly full trading week, the Australian Dollar to US Dollar exchange rate was trending around 0.8817 – over 0.7% higher on the day’s opening levels.
While demand for the US Dollar was undermined by another Ebola scare in the states, the Australian Dollar was bolstered by a week of above-forecast Chinese data and fairly positive domestic developments.
Next week the event most likely to inspire AUD/USD exchange rate volatility is the Federal Open Market Committee’s interest rate decision.
Policymakers are expected to announce the conclusion of the US asset purchase programme (which has been winding down all year).
If the central bank decides to draw out the end of quantitative easing for another month in response to global growth concerns, it could cause USD fluctuations.
US third quarter growth data, durable goods figures and Services PMI will also be of interest to AUD/USD investors.
The Australian Dollar to US Dollar (AUD/USD) exchange rate is currently trending in the region of 0.8815.
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