Australian Dollar Exchange Rate Forecast: AUD/USD, GBP and EUR Stronger after Chinese Stats

  • Posted on

Australian Dollars (AUD)

The Australian Dollar to US Dollar (AUD/USD) exchange rate rallied to a six-day high during the Australasian session as the pace of Chinese third quarter growth came in slightly above forecast.

Although the rate of expansion in the world’s second largest economy did ease from 7.5% to 7.3% on a quarter-on-quarter basis, growth of 7.2% had been anticipated.

The report triggered a rally in commodity-driven and higher-risk currencies and prompted this response from currency strategist Annette Beacher; ‘GDP growth in 2012 and 2013 was 7.7%, and 2014 looks set to achieve the official government target of 7.5%. Selective provision of liquidity by the Peoples Bank of China keeps hopes alive for more broad-based stimulus, but we expect these to remain unfulfilled.’

AUD/USD Gains 0.3%

The strength in the AUD/USD exchange rate was uncompromised by the Reserve Bank of Australia’s policy meeting minutes, despite their pessimistic overtones. The only US report with the potential to inspire Australian Dollar to US Dollar movement today is the nation’s Existing Home Sales report.

The Australian Dollar to US Dollar (AUD/USD) exchange rate is currently trending in the region of 0.8803.

AUD/GBP Trends Higher

On Tuesday the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate rallied to a high of 0.5430 as investors overlooked the Reserve Bank of Australia’s downbeat policy meeting minutes and focused instead on the comparatively upbeat Chinese growth and industrial production figures.

In the minutes the RBA once again reiterated that the Australian Dollar remains high by historical standards.

The central bank also stated; ‘Growth in the global economy was continuing at a moderate pace. Commodity prices, in particular iron ore prices, had declined over the past month. This was consistent with both the ongoing increase in iron ore supply and further weakening of the Chinese property market, which is an important source of demand for steel. Global financial conditions remained very accommodative and the Australian Dollar had depreciated somewhat, largely reflecting a broad-based appreciation of the US Dollar.’

However, with the rate of industrial production and GDP growth in China (Australia’s main trading partner) exceeding forecasts, the Australian Dollar was able to trend higher.

The AUD/GBP exchange rate went on to fluctuate following the release of UK public finance figures.

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is currently trending in the region of 0.5435.

« Previous Story

AUD to USD, GBP, EUR Exchange Rates: Australian Dollar Higher on Chinese Stimulus

Next Story »

Australian Dollar to US Dollar (AUD/USD) Exchange Rate Holds Gain Despite CPI

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.