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Pound to Australian Dollar Exchange Rate: GBP Sinks vs AUD as Australian Home Loans Increase

April 9, 2019 - Written by John Cameron

The Pound Australian Dollar (GBP/AUD) exchange rate is down by 0.4% and is currently trading around AU$1.8261 on the inter-bank market.

The Australian Dollar (AUD) strengthened against a weaker Pound (GBP) today following better-than-expected Australian home loans figures for February, which increased to 2.0%.

These were also followed by an uptick in Australian investment lending for homes figures for February, which rose to 2.6%.

Bruce Hockman, a Chief Economist at ABS, remained cautious however, commenting:

‘The longer term story is largely unchanged with new lending to households remaining subdued and well down on levels seen over the past five years.’

Ongoing US-China trade talks have also provided market confidence in the risk-sensitive ‘Aussie today’, with a generally positive attitude surrounding the discussions, which are giving the impression of imminent conclusion.

Clete Williams, a Trade Official at the White House, provided a mixed statement, saying:

‘We're making progress on a range of things, and there's some stuff where we're not satisfied yet.’

GBP/AUD Exchange Rate Falls as May Heads to France and Germany

Sterling, meanwhile, has weakened today as Prime Minister Theresa May heads to Germany and France to negotiate a possible extension to Brexit until 30 June.

Michel Barnier, the EU’s Chief Brexit Negotiator, has hinted that a possibility of a long extension to the process – possibly until 31 December 2019 – could be granted. However, this has failed to convince many Pound traders.

Barnier said:

‘The duration of an extension has got to be in line with or linked to the purpose of such an extension, and that is something I can imagine Mrs May will be telling the leaders tomorrow [during the emergency EU summit] as well.’

With no notable economic data releases today, many Sterling traders are focusing on cross-party talks within Parliament, and any indications that the Chancellor of Germany, Angela Merkel, or the French President, Emmanuel Macron, will provide any hopes for a delay to Brexit.

GBP/AUD Forecast: Sterling Could Rise if EU agree upon a Brexit Delay

Pound traders will be looking ahead to the publication of the UK manufacturing production figures for February tomorrow, which, however, are expected to slip.

These will be followed by the release of the UK industrial production figures for February.

‘Aussie’ investors, meanwhile, will be awaiting the release of the Australian Westpac Consumer Confidence figures for April, and with any signs of improvement this could see the AUD/GBB exchange rate rise further.

The GBP/AUD exchange rate will be dictated by the outcome of the emergency EU summit tomorrow, and any signs that the UK could be granted a Brexit delay would prove positive for the Pound, as no-deal fears would recede.

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TAGS: Pound Australian Dollar Forecasts

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