Pound to Aus Dollar Rate Today: GBP/AUD Exchange Rate in Narrow Range Ahead of Aus Forecasts

November 17, 2014 - Written by Ben Hughes

STORY LINK Pound to Aus Dollar Rate Today: GBP/AUD Exchange Rate in Narrow Range Ahead of Aus Forecasts

The Pound Sterling (currency:GBP) exchange rate traded within a narrow range against the Aus Dollar (currency:AUD) after UK property prices attained a six-month high despite declining on the month in November.

Before we continue with the GBP/AUD analysis and forecasts, let's take a look at the forex markets today:

The Pound to Australian Dollar exchange rate converts +0.29 per cent higher at 1 GBP is 1.79519 AUD.
The Pound to Euro exchange rate today is converting +0.32 per cent higher at 1.25511 GBP/EUR.
The Pound to New Zealand Dollar exchange rate is -0.08 pct lower with a conversion rate of 1 GBP equals 1.97336 NZD.
The Pound to US Dollar exchange rate today is converting -0.17 per cent lower at 1.56383 GBP/USD.

Rightmove House Prices fell by -1.8% on the month in November; however, the annual figure reached 8.5% from 7.6%. UK property prices could continue to increase next year as a slowdown in new properties takes place.

Rightmove stated: ‘Following the most active year for transaction volumes since 2007, average stock levels per estate agency branch at historically low levels, with an average of 60 properties for sale. This is the lowest number ever recorded at this time of year, with lack of property choice having helped fuel this year’s upwards price pressure.’ However, the Christmas period could be one cause of falling asking prices.

UK Growth Undermined by Euro Zone Underachievement

Furthermore, UK Prime Minister David Cameron stated that a global slowdown could be a precursor for another crisis. Cameron stated that recent UK economic underperformance could be attributed to the poor progress in the Eurozone. The warning from Cameron closely follows Bank of England (BoE) Governor Mark Carney’s statements suggesting that the Eurozone is in severe danger of stagnating. With many expecting the European Central Bank (ECB) to do more for the struggling Euro area, the coming few months could be an interesting time in terms of global developments.

Australia/China Deal could Save Traders 7%

Meanwhile, Australia has taken a monumental step with its largest trading partner, China.

Previously restrictions on trading in the Chinese currency meant traders had to convert Australian Dollars into US Dollars before converting to Chinese Yuan (CNY).

Now Australian traders should see more money for their sales, which could increase confidence in the Trans Tasman nation. It is expected that Australian businesses could save up to 7%.

HSBC Hong Kong representative Vina Cheung commented: ‘Direct conversion between the local currency and the Reniminbi helps with funding costs when it comes to trade settlements.’

Pound to Aus Dollar Exchange Rate Forecast

Still to come on Monday will be the release of the Australian ANZ Roy Morgan Weekly Consumer Confidence as well as the AUD Conference Board Leading Index. Last week confidence resided at 114.8. August’s Leading Index contracted by -0.2%. Tuesday may see further Australian Dollar movement when Reserve Bank of Australia (RBA) Governor Glenn Stevens makes a speech at the CEDA Annual Dinner. However, Pound movement on Tuesday is extremely likely with the UK Consumer Price Index (CPI) out for release. Economists’ are expecting prices to rise by 0.1% on the month in October which could see the core annual measure rise to 1.6% from 1.5%. UK Producer Price and Retail Price Indexes will also be published.

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TAGS: Australian Dollar Forecasts Currency Predictions Daily Cur Forecasts