February 20, 2019 - Written by John Cameron
STORY LINK Pound Australian Dollar Exchange Rate: GBP/AUD Fails to Capitalise on Disappointing Australian Wage Price Figures
The Pound Australian Dollar (GBP/AUD) exchange rate is currently trading in the region of AU$1.8180, unchanged from the day’s opening levels.
The Australian Dollar held firm against the Pound (GBP) today despite the release of the Australian wage price index figures for the fourth-quarter coming in at a below-expected 0.5%.
Jeremy Thorpe, a Chief Economist at PwC, commented:
‘Ongoing below-trend wages growth is the linchpin that continues to suppress consumer spending and inflation, driving reduced savings growth and reinforces the concern about cost-of-living for many Australians.’
The ‘Aussie’ has however benefited from the news that President Donald Trump could halt tariffs on Chinese exports ahead of the 1 March ‘trade truce’ deadline – relieving some concerns that US Chinese relations could flare up as the date drew nearer.
However, there are still concerns about the possibility that the US could increase the existing 10% tariffs to 25%, which would affect $200bn of Chinese imports.
China is Australia’s biggest trading partner, and any strains on the Chinese economy could have a knock-on effect on the ‘Aussie’.
Many Pound traders, meanwhile, are remaining cautious ahead of the talks between Prime Minister Theresa May and the President of the European Commission Jean-Claude Juncker today, following recent comments from Juncker indicating a general lack of confidence in a ‘breakthrough’.
The Pound could benefit today, however, if the EU shows any signs of conceding on a possible extension of Article 50.
Today also saw the resignation of 3 Tory MPs, with Sarah Wollaston – one of the MPs who resigned – saying:
‘It’s very clear to me that our associations are changing. We have people who are very clearly Ukip and they are turning the Conservative party to Blukip.’
Growing factions in government are only adding to the current uncertainty and could prove Pound-negative in the short term.
Heidi Allen, a now former Conservative MP, warned:
‘This is designed to be a wake-up call… This is a taste of more to come.’
GBP/AUD Exchange Rate Forecast: Australian Dollar Could Benefit from US-China Trade Consensus
The GBP/AUD exchange rate is set to remain sensitive to Brexit and US-China trade developments this week, with Sterling investors focusing on any signs of a consensus between the UK and EU.
Tomorrow will also see the publication of Australian employment data – upbeat figures could give AUD a lift.
Sterling, on the other hand, could be pressured lower if UK public borrowing increases.
Latest Exchange Rates 20.02.2019
AUD/CAD 0.94349 (-0.36%)
AUD/EUR 0.63136 (-0.11%)
AUD/GBP 0.54897 (+0.03%)
AUD/NZD 1.04384 (+0.16%)
AUD/USD 0.71726 (+0.07%)
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: Pound Australian Dollar Forecasts