Pound Australian Dollar Exchange Rate Forecast : GBP AUD Neutral Negative

March 12, 2014 - Written by James Fuller

STORY LINK Pound Australian Dollar Exchange Rate Forecast : GBP AUD Neutral Negative

Legendary currency market operator and global investor George Soros has expressed his concerns that the European Union is at risk of breaking up because of a lack of leadership from Germany. Soros stated during an interview within the past 24hrs that Germany needs to come to the realisation that stringent austerity measures imposed by Brussels on the eurozone’s peripheral states are in danger of plunging the region as a whole into a deadly downward economic spiral. Soros went on to warn that the Euroland’s policymakers’ apparent obsession with controlling price rises was risking the onset of deflation.

The euro has managed to press ahead once again against Sterling, with the Pound euro exchange rate edging down to as low as 1.1947 GBP/EUR. A positive set of February whole of eurozone Industrial Production numbers, published at 1000hrs GMT today, beat expectations to show at 2.1%, providing more buying pressure for the euro. GBP/EUR now looks to be set on a fresh downtrend, having topped out at 1.2258 last month. If the shift lower continues, then look for the pair to trend lower towards its key interim floor at 1.1811.

Meanwhile, the Australian Dollar exchange rate has edged higher throughout the day, sending the Pound Aussie Dollar exchange rate up through the 1.8600 level earlier on GBP AUD. This evening’s Asian session is likely to bring further movement for the pair, with the publication of last month’s domestic Australian labour market numbers. Look for any dip in the overall level of February unemployment to trigger a move lower towards the psychologically key 1.8000 threshold for GBP AUD. A surprise decision to hold its Official Cash Rate from the Reserve Bank of New Zealand during the early part of this evening would be likely to heap pressure on the Kiwi Dollar against the Aussie, which would have the knock-on effect on the relative levels of the Australian tender against other major global currencies including the Pound.

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