Pound to Australian Dollar Exchange Rate News: AUD Climbs after PBOC Alters Deposit Rules

Modified: Wednesday, 31 December 2014 12:39 BST - Written by Frank Davies

STORY LINK Pound to Australian Dollar Exchange Rate News: AUD Climbs after PBOC Alters Deposit Rules

Currency News UK Brings You Our Pound Sterling to Australain Dollar Exchange Rate Report

With economic reports for Australia and the UK in short supply, movement in the Pound to Australian Dollar exchange rate was generated by global developments – in particular an announcement from the People’s Bank of China (PBOC). China is Australia’s main trading partner, so any news from the Asian nation tends to have an impact on both Australia’s economic prospects and the performance of the Australian Dollar.

Aus Dollar Exchange Rates Today

The Pound to Australian Dollar exchange rate converts +0.04 per cent higher at 1 GBP is 1.90289 AUD.
The Euro to Australian Dollar exchange rate is -0.29 pct lower with a conversion rate of 1 EUR equals 1.48184 AUD.
The US Dollar to Australian Dollar exchange rate converts -0.2 per cent lower at 1 USD is 1.21952 AUD.
The New Zealand Dollar to Australian Dollar exchange rate today is converting -0.23 per cent lower at 0.95493 NZD/AUD.

In another attempt to support Chinese growth, the PBOC has altered restrictions regarding the calculation of bank deposits. In light of this announcement, additional, more extensive alterations are unlikely to occur. The PBOC action helped to counter the adverse impact of Chinese industrial profits data, published over the weekend. The report showed the steepest decline in profits for two years. On Monday the Australian Dollar gained by 0.5% against the Pound, advanced by 0.4% against the US Dollar and was 0.3% higher against the Euro.

The Australian Dollar’s performance prompted this response from industry expert Michael McCarthy; ‘The market has gone from strength to strength today and the big surprise is the resources stocks. Although we did see pressure on energy stocks at the open, both Rio and BHP opened in the green and headed high very quickly.’ However, the prospect of the US Federal Reserve adjusting interest rates in the near further is likely to keep the Australian Dollar under pressure against the US Dollar in the medium term and the AUD/USD pairing may shed its initial gains as the week continues. According to market strategist Stan Shamu; ‘While equities drifted higher, risk currencies have remained on the backfoot with the Australian Dollar threatening to break the 81 US cents handle yet again.’

AUD/NZD exchange rate trading was also concerning, with the Australian Dollar falling to a nine-year low against its South Pacific currency rival. Although weakness in the commodity market has effected both the Australian Dollar and New Zealand Dollar in recent months, the ‘Aussie’ is feeling the heat particularly as the slump in oil and iron ore pushes back Reserve Bank of Australia interest rate hike expectations. Some industry experts believe that the AUD/NZD exchange rate will record further declines in the New Year. Senior forex dealer Kevin Morgan observed; ‘I’ve got quite a strong feeling that we are going to test up towards parity [against the Australian Dollar] in the first quarter of 2015. The negatives for the Australian Dollar are similar to the negatives for the Kiwi Dollar, i.e. falling commodity prices, but there is a much bigger impact on the Australian economy as a proportion of GDP.’


Further Australian Dollar movement is likely to be limited this week due to lack of Australian reports. That being said, the nation’s private sector credit figures could cause some ‘Aussie’ movement, as could China’s Manufacturing and Non-Manufacturing PMI’s.

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