GBP AUD Today: Pound Australian Dollar Exchange Rate remains subdued as UK construction Data Disappoints

April 11, 2014 - Written by David Woodsmith

STORY LINK GBP AUD Today: Pound Australian Dollar Exchange Rate remains subdued as UK construction Data Disappoints

The Pound to Australian Dollar exchange rate remained subdued as the Pound Sterling continued to be weaker against the strong Aussie on Friday; the Bank of England’s decision to maintain interest rates at a record low and worse than expected construction sector output data weighed.

The Pound Sterling to Australian Dollar exchange rate is trading down -0.19% at 1.78197 GBP/AUD.

The Australian Dollar (currency:AUD) briefly softened early in the session as economists were spooked by a selloff of stocks in the US and Asia. Economist forecasts that the currency could begin to weaken also weighed.

“There was a bit of a meltdown in US stocks, led by the tech sector, and that spilled over into Asian stocks this morning, which sort of furthered the risk-off mentality. The Australian Dollar has just been caught amid this quite rapid deterioration,” said Ray Attrill from National Australia Bank.

Against the Pound and other currencies the Aussie rallied later on due to concerns over the strength of the US economy.

According to the Office for National Statistics Construction output in the UK declined in February as heavy rain led to flooding in many parts of the country. Construction output declined by 2.8%, the biggest drop recorded since November last year. The floods could prove to be a double edged sword however as economists predict that the construction could see increases in output as repairs of the flood damage get under way.

The Aussie could make further gains if this afternoons US data disappoints. A weakening of the US Dollar has been one of the main factors for the Aussies strong performance.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts