Pound to Australian Dollar Advances as 'Aussie' Weakness Continues on Weak Chinese Data

December 8, 2014 - Written by Toni Johnson

STORY LINK Pound to Australian Dollar Advances as 'Aussie' Weakness Continues on Weak Chinese Data

Latest Pound Sterling vs Australian Dollar Forecast and GBP/AUD Exchange Rate Predictions

The Pound gained against the Australian Dollar as Chinese data and recent Australian figures weakened the ‘Aussie’.

The Reserve Bank of Australia (RBA) may be happy with the recent fall in the Australian Dollar as they have deemed the currency overvalued for some time.

Furthermore, with a slowdown emerging in one of the world’s largest economies (China) the ‘Aussie’ hasn’t been offered much outside support of late. Strategist David Scutt commented: ‘The import side of the Chinese trade data disappointed – as a major exporter to China, that’s obviously not a great outcome for Australia.’

AUD Rates Today

The Pound to Australian Dollar exchange rate converts +0.65 per cent higher at 1 GBP is 1.88588 AUD.
The Euro to Australian Dollar exchange rate is +0.27 pct higher with a conversion rate of 1 EUR equals 1.48382 AUD.
The US to Aus Dollar conversion rate is +0.11 pct higher at 1.20505 USD/AUD.
The Swiss Franc to Australian Dollar exchange rate today is converting +0.32 per cent higher at 1.23411 CHF/AUD.
The Canadian to Aus Dollar exchange rate is -0.2 pct lower with a conversion rate of 1 CAD equals 1.04949 AUD.

Chinese Data Drives Australian Dollar Exchange Rate Lower

The Chinese Trade Balance figures showed a widening in the nation's surplus in November to $54.47B from $45.41B after Imports and Exports failed to meet economists’ expectations.

Exports were forecast to slip from 11.6% to 8.0% on the year in November. Instead, the actual figure flopped far lower to 4.7%.

In addition, annual Imports went from 4.6% to -6.7% in November, a much larger decline than the 4.0% prediction. Economic expert Lu Ting commented: ‘High trade surplus will be here to stay for several months on falling oil prices.’

The UK saw some positivity from the Lloyds Employment Confidence index, which rose in November from 0 to 1. Additionally, Bank of England (BoE) officials are scheduled to speak throughout Monday and any hawkish comments could influence the Pound. The central bank already offered the Pound some support during the early part of the week when it claimed that the UK economy could withstand an interest rate hike—a prospect eagerly anticipated by many.

Pound to Aus Dollar Exchange Rate Forecast

However, Tuesday is set to heat up for Sterling trading with the release of Industrial Production and Manufacturing Production figures.

On the year, the industrial sector is expected to have improved by 1.8% in October from 1.5%.

The manufacturing area is also forecast to expand from 2.9% to 3.2%. In the second half of Tuesday’s session the UK NIESR Gross Domestic Product (GDP) Estimate will be out.

The previous report showed growth of 0.7% in October. Meanwhile, Australian Business Confidence and Business Conditions are scheduled for release, as well as Westpac’s Consumer Confidence report.

Australian Employment Change and Unemployment Rate figures are out on Thursday which could be highly significant for Australian Dollar movement. The RBA has been predicted to cut rates in the early part of 2015 following stagnation in Australian growth. In addition, the December Australian Consumer Inflation Expectation will be published on Thursday. The previous figure resided at 4.1%.

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TAGS: Australian Dollar Forecasts Currency Predictions Pound Aus Forecasts