British Pound to Australian Dollar Forecast - Today's GBP AUD Exchange Rate Slips, Aus Makes Gains

September 21, 2014 - Written by Frank Davies

STORY LINK British Pound to Australian Dollar Forecast - Today's GBP AUD Exchange Rate Slips, Aus Makes Gains

The UK Pound to Australian Dollar (GBP/AUD) exchange rate climbed last Friday as weeks of heated debate surrounding the Scottish referendum voting subsided.

Sterling gained against all 31 other major currencies on the announcement that Scotland would remain part of the UK.

The Aus Dollar (AUD) has fallen against the British Pound (GBP), Euro (EUR), US Dollar (USD) and other majors as many other currencies placed heavy downward pressure on it.

The latest conversion rates for your reference are as follows:

- The Australian Dollar to Canadian Dollar exchange rate is down 0.44 per cent at 0.97432 AUD/CAD.
- The Australian Dollar to Euro exchange rate is trading 0.79 pct lower at 0.69065 AUD/EUR.
- The Australian Dollar to Pound exchange rate converts 0.91 pct lower at 0.54309 AUD/GBP.
- The Australian Dollar to New Zealand Dollar conversion rate is trading down 0.42 per cent at 1.09294 AUD/NZD.
- The Australian Dollar to US Dollar exchange rate is down 0.71 pct at 0.88752 AUD/USD.
- The Australian Dollar to Rand exchange rate is trading down 0.19 per cent at 9.87849 AUD/ZAR.

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Pressures Affecting the GBP to AUD Exchange Rate

The Pound gained dramatically in the early half of Friday, however as the day has continued it has softened greatly against other majors. Sterling has managed to retain its gains against the ‘Aussie’ which seems likely to remain low for some time. The Australian Dollar has been a favourite in the market in recent months, but this week saw it fall lower against a basket of other foreign currencies. The Reserve Bank of Australia (RBA) has repeatedly expressed hopes that the ‘Aussie’ will fall, as its strength was damaging the country’s economic growth.

Economist Ben Jarman stated: ‘Currency moving around always creates winners and losers. How that affects distribution around the economy depends on individual circumstances, but what the RBA is hoping is that it would allow those parts of the economy that have been depressed for a while to come back to life.’ One effect of the high ‘Aussie’ has been tourism; Australian natives would rather travel abroad to other destinations than holiday in their domestic Australia. Now a lower Australian Dollar is in place, citizens are more likely to remain in Australia and therefore boost the economy with local holidays.

Jarman continued: ‘Then in terms of our own hip-pocket decision, if imported goods become more expensive we’re more likely to spend our dollar on goods and services produced here. In the longer run, that helps create jobs and growth.’

Forecast: Upcoming Factors to Influence the Pound to Australian Dollar Conversion Rate

With no further domestic data publications scheduled this week for the UK or Australia, movement in the exchange rate will be dependent on any global political developments.

Looking ahead to next week, the UK will see Loans for House Purchase and Public Finances figures on Tuesday, whilst Australian Skilled Vacancies numbers are scheduled for publication on Wednesday.

An event that could hinder the Pound to Australian Dollar exchange rate could be Reserve Bank of Australia (RBA) Governor Glenn Stevens’ statement at the Melbourne Economic Forum.

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