British Pound to Aus Dollar Exchange Rate Today: GBP vs AUD Softer as Aussie Gains Persist

October 20, 2014 - Written by Toni Johnson

STORY LINK British Pound to Aus Dollar Exchange Rate Today: GBP vs AUD Softer as Aussie Gains Persist

The week started with the British Pound bearish against the Australian Dollar (GBP vs AUD) as the Aussie currency unit recouped last week’s losses.

Reserve Bank of Australia (RBA) Assistant Governor Christopher Kent called on Australian citizens to work until later in their lives on Monday in an attempt to continue productivity in the economy.

Kent suggested that the Australian retirement age should increase from 65 to 70, making it the highest in the world.

The Assistant Governor stated: ‘What we need to do is look forward into our futures as best we can. [One option] is to work longer into life if that’s what you need and are able to do.’

The Pound to Australian Dollar exchange rate converts +0.12 per cent higher at 1 GBP is 1.84009 AUD.
The Euro to Australian Dollar exchange rate is +0.08 pct higher with a conversion rate of 1 EUR equals 1.45723 AUD.
The US Dollar to Australian Dollar exchange rate converts -0.33 per cent lower at 1 USD is 1.13838 AUD.
The NZ Dollar to Aus Dollar exchange rate converts +0.17 per cent higher at 1 NZD is 0.90698 AUD.

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Reserve Bank of Australia Increases Working Age Expectation

As the retirement age in Australia increases, the International Labour Organisation has predicted the ratio of working-age Australians in comparison to those over 65 will drop from 5:1 to 3:1 by 2050.

Kent argues that a longer timeframe for working will encourage citizens to begin their own businesses with the financial security of more years of financial earning to compensate for any losses.

Kent stated: ‘They could use those years to pursue a safer option to generate a living, or even take on a different risky venture. In short, “40 may be the new 30” when it comes to comparing the willingness of the current generation to take on risk compared with those born only a few decades ago.’

Furthermore, Kent discussed interest rates. Interest rates have been a hot topic amongst many investors hoping for a rise after the RBA cut their benchmark rate to 2.5% in August 2013. RBA policymakers have been under fire for leaving such loose policy in place which allows debtors to gain whilst borrowers get the rough end of the bargain - an action which has caused a heated property market.

Kent defended the bank’s decision stating: ‘This is stimulatory nonetheless, in part because the household sector is a net debtor overall.

Low interest rates also encourage expenditure to be brought forward, provide an incentive for savers to shift into riskier, higher-return assets, and push up asset prices, to the benefit of those that own housing and equities.’

Pound to Australian Dollar Weekly Forecast

This week the GBP AUD exchange rate will have several opportunities for market movement.

Tuesday will be influential for the ‘Aussie’ with the release of the RBA October meeting minutes, as well as Chinese Industrial Production and Gross Domestic Product (GDP) figures.

As Australia’s largest trading partner, China’s data can have a direct impact on the ‘Aussie’ commodity currency.

UK Public Finances and Public Sector Net Borrowing figures are also due out on Tuesday and could offer Pound support if favourable.

Wednesday may also see an increase of GBP to AUD movement with the Bank of England (BoE) releasing its meeting minutes.

Meanwhile, the ‘Aussie’ could advance against the Pound on the outcome of the Australian Consumer Price Index and RBA Governor Glenn Stevens’ statements.

Australian Business Confidence and UK Retail Sales are out on Thursday, whilst Friday’s UK Gross Domestic Product numbers could see Pound movement.

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