Pound to Australian Dollar Exchange Rate Forecast: Australia Data Sends GBP/AUD Plummeting

May 27, 2014 - Written by John Cameron

STORY LINK Pound to Australian Dollar Exchange Rate Forecast: Australia Data Sends GBP/AUD Plummeting

The Pound to Australian Dollar exchange rate (GBP to AUD) fell to its lowest level in over a week on Thursday after the Australian Bureau of Statistics released a report that Australia's economy is moving away from its dependency on the mining sector. The GBP to AUD exchange rate fell 0.63%pct (16:00GMT) to trade at 1.80033.

The Pound to Australian Dollar exchange rate is trading firmer on Tuesday after the Confederation of British Industry said that confidence in the UK’s service sector climbed to a record high this quarter, suggesting that the dominant sector is likely to expand strongly for the rest of the year.

The Pound Sterling to Australian Dollar exchange rate is trading up +0.13% at 1.82188 GBP/AUD.

The CBI said that optimism in consumer businesses such as hotels and restaurants soared from 43 to 53, the highest level recorded since the survey began in 1998. A gauge of professional service firms also rose to 54.

As the service sector makes up around 75% of the UK economy the rise in confidence is further good news for the strengthening economy. The service sector is the main driving force behind the UK’s economic growth.

“With a full year of growth under their belts, service sector firms are more upbeat than they have been for a long time. The recovery continues to strengthen with both consumer and business-facing firms taking on more staff and investing,” said the CBI Deputy Director General.

Australian Dollar exchange rate weakens on poor consumer confidence

The Australian Dollar meanwhile was softer after a report showed that consumer confidence plunged by 15% over the past five weeks as the federal budget weighed.

Also released on Tuesday was an indicator of household financial stress from Dun and Bradstreet, which showed household financial stress levels increasing, particularly in the Queensland and Victoria regions.

GBP AUD forecast

For the rest of the week the ‘Aussie’ is likely to remain range-bound due to a lack of major economic data releases.

“It’s been a very quiet week so far given that the US and UK was on holidays. We’re not expecting too much movement because there isn’t a lot of economic data out this week. The major focus will be the capital expenditure report but up until then the Aussie Dollar is likely to remain range-bound and it should be a very quiet week,” said a currency strategist at Commonwealth Bank.

Relevant Aus Dollar Exchange Rates (Sending Money to Australia)

The Pound Sterling to Australian Dollar exchange rate is trading up +0.13% at 1.82188 GBP/AUD.
The Euro to Australian Dollar exchange rate is trading up +0.01% at 1.47468 EUR/AUD.
The US Dollar to Australian Dollar exchange rate is trading up +0.02% at 1.08047 USD/AUD.
The Canadian Dollar to Australian Dollar exchange rate is trading up +0.17% at 0.99654 CAD/AUD.
The New Zealand Dollar to Australian Dollar exchange rate is trading down -0.07% at 0.92413 NZD/AUD.

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