Exchange Rate Forecast: Pound Australian Dollar (GBP/AUD) & Pound New Zealand Dollar (GBP/NZD)

Modified: Wednesday, 20 November 2013 11:16 BST - Written by James Fuller

STORY LINK Exchange Rate Forecast: Pound Australian Dollar (GBP/AUD) & Pound New Zealand Dollar (GBP/NZD)

Yesterday’s session in the global currency markets brought the publication of a report from the Organisation for Economic Co-operation and Development (OECD) which could provide the Pound Australian Dollar (GBP/AUD) and Pound New Zealand Dollar exchange rates (GBP/NZD) with a renewed boost over the long term forecast.

The OECD missive brought news of a ‘significant’ reduction to the austere organisation’s 2013 and 2014 GDP growth forecasts. The body now expects the global economy to register a level of year-on-year growth of only 2.7% this year, down from a prediction of 3.1% in May. Meanwhile, the global economy is forecast to expand by 3.6% next year. The OECD laid the blame for the reduced projected levels of worldwide growth firmly at the feet of a relatively disappointing performance from emerging market economies, and more specifically those in the Far East. The report suggested that difficulties in assimilating rapidly expanding populations in the New World economies is causing a pronounced underperformance in those economies. The organisation predicted that these teething problems would provide a drag on the global economy during coming years.

Upside pressure on GBP/AUD and GBP/NZD accentuated by the OECD’s observation on UK economy

If the prophesies contained in the OECD statement come to pass, then expect the Antipodean Dollars to endure sustained selling pressure during coming months. The Australian and New Zealand economies remain heavily dependent on continued strong demand for their raw materials from second world nations in South East Asia, meaning that there could be turbulent times to come for the Aussie and Kiwi Dollars. Upside pressure on GBP AUD and GBP NZD were accentuated by the OECD’s observation that signs of improvement were ‘particularly apparent’ in the UK economy.

However, it wasn’t all bad news for AUD and NZD yesterday; official figures revealed that inward investment into China had increased by some 5.77% during the ten months to the end of October 2013 in comparison to 2012 levels. Whilst Chinese economic activity remains strong, the Australian and New Zealand Dollars will always stand a chance.

Australian & New Zealand Dollar Exchange Rates Today (20/11/2013)

The Pound Sterling to Australian Dollar exchange rate is trading up 0.49% at 1.71747 GBP/AUD.
The Australian Dollar to Pound Sterling exchange rate is at 0.58212 AUD/GBP.
The Pound Sterling to New Zealand Dollar exchange rate is trading up 0.5% at 1.9369 GBP/NZD.
The New Zealand Dollar to Pound Sterling exchange rate is at 0.51623 NZD/GBP.

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