Pound Australian Dollar Exchange Rate Threatens New High, Pound Dollar Exchange Rate Falls

Modified: Thursday, 16 January 2014 12:08 BST - Written by John Cameron

STORY LINK Pound Australian Dollar Exchange Rate Threatens New High, Pound Dollar Exchange Rate Falls

Last night’s Asian session brought further bad news for the already under-pressure Australian Dollar (currency:AUD). December’s domestic job creation figures showed that a net 22,600 positions had been lost in the flailing Antipodean economy - analysts had been anticipating a positive print of 10,000, so the news came as a body-blow to the Aussie. The development cements the conventional wisdom amongst investors which suggests that activity levels in the Australian economy are cooling thanks to a heady combination of a downward drift in global commodity prices and an apparent slowdown in the rate of China’s growth rates.

The GBP AUD Exchange Rate Close to 4 Year High after Australia Figures

The fall-out from last night’s Australian figures has sent the Pound to Australian Dollar exchange rate (GBP/AUD) up to as high as 1.8612 during early trading today. At this stage, the pair was within a cent of its 4-year high against the Australian unit. A break above the extant range-topping level of 1.8698 would confirm the strong uptrend for the pair which has been in place since last Easter.

Meanwhile, the US Dollar has continued its improvement against Sterling on the day thanks to the encouraging tone struck by last night’s Federal Reserve Beige Book. The snapshot of the state of the US economy from the Fed observed that the US economy continued to expand at a moderate rate during the final two months of 2013. The missive went on to note that some cities and regions had experienced an acceleration of the recent economic improvement.

Elsewhere, this morning’s eurozone Consumer Price Index data confirmed that the rate of price rises in the euroland remained at well below the 1.0% level last month. With Christine Lagarde, the head of the International Monetary Fund, warning that widespread deflation could pose a threat to the global economy in 2014, it now appears more likely than ever that the European Central Bank will opt to introduce its own form of Quantitative Easing later in the year.

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