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FX Predictions Now: GBP/AUD Currency Pair Falls as ?Aussie? Advances on Other Majors, GBP, USD, Weaker Dollar Boosts Tourism

June 22, 2015 - Written by Admin

Australian Data Weakens Australian Dollar (AUD) Exchange Rate

Although the Pound slipped against several of its peers on Monday amid a bout of profit-taking, the British currency remained trending close to 71-month highs against the Australian Dollar. During South Pacific trading the AUD exchange rate come under a little pressure as domestic data failed to impress. The Westpac Leading Index printed at -0.3% in April and the nation's House Price Index revealed a smaller-than-expected increase.


GBP to AUD Exchange Rate Trending Lower Today

The Pound was a little softer against the ‘Aussie’ on Monday in what promises to be a quiet week for the UK economy. The Australian Dollar was able to clamber slightly higher ahead of the meeting between Greece and its creditors which concluded with no deal made.

NAB stated: ‘The tipping point for Greece to pay its creditors is rapidly approaching, and a deal is proving difficult to come by. It may be that one is forthcoming, but if not, we can expect a rapid rise in risk aversion. That remains a significant downside risk for the Australian Dollar.’

FX Forecast Today: Softer AUD Exchange Rate Boosts Tourism

The Australian Dollar exchange rate has been weakening in recent months after the Reserve Bank of Australia conducted two interest rate cuts. However, it appears as if the softer AUD currency has helped to boost tourism in some areas as a recorded 60,000 additional visitors flocked to Western Australia in 2014 with a total of 826,700.

Industry expert Evan Hall commented: ‘Over the last 12 to 18 months, that’s been dropping down to where it is now, around that 75-cent market so that’s had quite an immediate effect. We’ve basically been held back by the high ‘Aussie’ Dollar and the cost of travelling in Western Australia because of the resources boom, now that’s been stripped out, we’re a very attractive destination.’

The higher level of tourism may begin to translate into Australian data in the near future, with areas such as services, retail sales and confidence all likely to be affected.

Hall continued: ‘Leisure tourists tend to spend more and they certainly stay longer, and they get out to more parts of regional Western Australia.’

AUD Expected to Fluctuate on Australian House Price Data, Consumer Confidence Data in Focus

Meanwhile, by way of data, the Australian Dollar may experience some fluctuations on Tuesday with the release of the Australian House Price Index. At present, economists believe that Aussie house prices will increase by 7.4% on the year in the first quarter after the previous 6.8% reading. Weekly Australian Consumer Confidence data will also be out on Tuesday.

Credit Agricole's Pound Sterling GBP Exchange Rate Outlook – UK Consumer Demand to Keep Up

Credit Agricole weighed in, saying: ‘Little has changed in our underlying UK economic view for nearly two months. We expect UK consumer demand to remain solid and any balance of payments concerns to stay in the background for now. It should not surprise then that we retain a positive GBP outlook.’

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