BREAKING NEWS: Pound Sterling to Australian Dollar Exchange Rate (GBP/AUD) Significant Gains Ahead of RBA Rate Decision

May 30, 2014 - Written by Minesh Chaudhari

STORY LINK BREAKING NEWS: Pound Sterling to Australian Dollar Exchange Rate (GBP/AUD) Significant Gains Ahead of RBA Rate Decision

GBP/AUD Breaking News: With the Reserve Bank of Australia’s policy decision looming the Australian Dollar (AUD) to Pound Sterling (AGBP) was trading in a weaker position on Monday. The Pound to Australian Dollar exchange rate has seen significant gains of 0.54pct at 13:30GMT on Monday. The ‘Aussie’ recorded short-lived gains over the weekend as a gauge of Chinese manufacturing showed stronger-than-forecast growth. The Pound Sterling to Australian Dollar exchange rate is trading up +0.54% at 1.81204 GBP/AUD. See today's GBP/AUD forecast for further details...

While the Pound to Australian Dollar exchange rate is still short of the highs achieved last week, the British currency has at least clawed back some of the losses sustained as a result of an easing in rate-hike bets.

Overnight the Australian Dollar was supported by domestic data revealing a stronger-than-forecast increase in private sector credit.

Private sector credit was expected to have risen by 0.4 per cent in April, month-on-month, but it actually climbed by 0.5 per cent.

Furthermore, the ‘Aussie’ largely retained the gains recorded on Thursday following the publication of capital expenditure data. The report showed an encouraging amount of investment in Australia’s manufacturing sector.

As economist Besa Deda observed; ‘The Aussie Dollar did appreciate in the wake of that capital expenditure data. That would be providing some support again today in the absence of other significant domestic data.’

However, during the European session the Pound was able to rally against several of its counterparts as investors responded to positive UK news.

There has been something of a dearth of influential UK reports this week and the Pound has drifted lower as a result, so the increase in UK consumer confidence was followed by some modest Sterling gains.

The GfK confidence measure rose from -3 to 0 in May, better than the increase to -2 expected.

This report was followed by a Hometrack housing survey detailing a 0.5 per cent monthly increase in UK house prices.

Pound Sterling (currency:GBP) gains were limited by the fact that investors are now fairly sold on the idea of the first BoE interest rate increase occurring in the spring of next year, but the Pound Australian Dollar exchange rate pairing was in a slightly stronger position.

Next week the major UK reports to be aware of include mortgage approvals data, Markit construction/services PMI, the Bank of England’s rate decision and the nation’s total trade balance.

GBP/AUD forecast and outlook

Of course the direction taken by the GBP/AUD pairing will also be dictated by Australia’s current account balance, building approvals report, retail sales figures, first quarter GDP, performance of service index, trade balance and performance of construction.

The Reserve Bank of Australia’s interest rate decision will also have a considerable impact on the market.

To take advantage of better exchange rates for a Pound to Australian Dollar money transfer, please contact our resident FX expert to lock in the best GBP/AUD exchange rate for your foreign exchange transaction.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Australian Dollar Forecasts Daily Currency Updates Pound A Forecasts