The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate has seen a significant gain today, as the Australian Dollar strengthened across the board following the Reserve Bank of Australia’s (RBA) announcement.
The Australian Dollar (AUD) has gained across the board today after RBA Governor Glenn Stevens announced that the Australian interest rate would not be cut in the near future. Stevens accompanied the announcement with the optimistic statement that ‘The Australian Dollar is adjusting to the significant decline in key commodity prices.’
The Australian Dollar rose by 1% against the New Zealand Dollar (AUD/NZD), over 1.4% against the Canadian Dollar (AUD/CAD) and the Euro (AUD/EUR), and more than 1.6% against the Pound Sterling (AUD/GBP), the Chinese Yuan (AUD/CNY) and the US Dollar (AUD/USD).
The Pound Sterling (GBP) has fared considerably worse than the Australian Dollar (AUD) today, seeing losses against the commodity currencies and trending in a narrow range against others. The Pound Sterling has declined by -0.2% against the South African Rand (GBP/ZAR), more than -0.6% against the New Zealand Dollar (GBP/NZD) and posted a greater loss of over -1.1% against the Russian Ruble (GBP/RUB) and the Australian Dollar (GBP/AUD).
The Pound’s losses came after the UK Construction PMI for July showed a 1 point drop from 58.1 down to 57.1, which although above 50 (and indicative of growth) is a step in the wrong direction for the UK economy.
Thursday is a crucial day in the Australian Dollar to Pound Sterling (AUD/GBP) pairing, as key data releases and meetings are scheduled for both Australia and the UK.
The Bank of England (BoE) Monetary Policy Committee (MPC) is meeting to discuss the UK interest rate, among other items. Although nobody is predicting an immediate interest rate rise, any signs that a rate hike may be occurring in the near future will surely strengthen the Pound against its competitors, and possibly reverse the balance in the GBP/AUD exchange rate.
However, the Australian Employment Change and Unemployment Rate figures for July are also due on the same day, and while forecasts predict a 0.1% increase in the Unemployment Rate (up to 6.1%), speculators are also highly optimistic for a large increase in the Employment Change; a sizable result could easily eclipse the Unemployment Rate data and see the ‘Aussie’ retain it’s comfortable current position against its rivals.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.4739 and the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 2.1111 today.
Disclaimer: Currency-Converter.com.au 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. Currency-converter.com.au 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. Currency-converter.com.au 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.