GBP AUD Exchange Rate Forecast To Gain, GBP NZD Drops

Modified: Thursday, 12 September 2013 13:36 BST - Written by David Woodsmith

STORY LINK GBP AUD Exchange Rate Forecast To Gain, GBP NZD Drops

The GBP NZD and GBP AUD exchange rates have headed in opposite directions overnight. The Kiwi has gained ground as investors factor-in a higher chance of domestic rate hikes, while the Australian Dollar has suffered due to weak domestic employment figures.

The Pound Australian Dollar exchange rate (GBP/AUD) is currently trading up by 0.90% at 1.7111 GBP/AUD. The Australian Dollar Pound exchange rate is currently trading at 0.5844 AUD/GBP.

The New Zealand Dollar has been the strongest performing of the sixteen most-actively traded global currencies so far today thanks to comments from the Reserve Bank of New Zealand (RBNZ) which were contained in last night’s statement which accompanied its policy announcement. The RBNZ stated that a hike in domestic interest rate was likely to take place, perhaps as soon as April of next year. Such a move would be sure to make New Zealand one of the first developed nations to enter into a new rate-raising cycle, making NZ a relatively attractive destination for inward investment.

The development has sent the Pound New Zealand Dollar exchange rate (GBP/NZD) down into the 1.9300s earlier. Further losses could lie ahead for GBP NZD as analysts price-in a higher percentage chance of an increased return on their New Zealand-based investments. Elsewhere, the Australian Dollar has headed in the opposite direction to its Antipodean sister currency, sending the Pound Australian Dollar exchange rate up by 0.90%. The pair currently stands at 1.7105.

The forward move for GBP AUD has once again been driven by concerns regarding the slowdown in Australia’s economy as global commodity prices continue to edge lower. These fears were accentuated by last night’s Australian unemployment data which came in below analysts’ expectations, revealing that there was an unexpected drop in job creation in Australia last month, with 10,800 less Australians in work compared to the month before. The consensus amongst economists was that the figure would reveal that 10,000 new jobs were generated last month. GBP AUD’s near-term peak in the upper end of the 1.7400s now appears to be a viable near-term target for the pair.

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TAGS: Australian Dollar Forecasts Daily Currency Updates New Zea Forecasts