April 15, 2019 - Written by John Cameron
STORY LINK Pound to Australian Dollar Exchange Rates Rise despite US-China Trade Deal Optimism
The Pound Australian Dollar (GBP/AUD) exchange rate rose today and is currently trading around AU$1.8269 on the inter-bank market.
The Australian Dollar (AUD) fell against the Pound (GBP) today despite increased risk appetite following the news that the US and China were coming ever closer to securing a trade deal.
This came after the Secretary of the US Treasury, Steven Mnuchin, said that the two superpowers were making progress in their talks.
‘I think we’re hopeful that we’re getting close to the final round of concluding issues… We are making progress, I want to be careful. This is not a public negotiation... this is a very, very detailed agreement covering issues that have never been dealt with before.’
With China being Australia’s closest trading partner, this has left many ‘Aussie’ traders feeling optimistic. Although this has not been enough to encourage the AUD/GBP exchange rate.
GBP/AUD Exchange Rate Rises as UK House Prices Soar
Sterling, however, gained on the Australian Dollar following the publication of the UK Rightmove House Price Index figures for April, which rose to 1.1% and encouraged market confidence in the Pound.
Guy Gittens, a Managing Director at Chestertons, a London estate agency, commented:
‘We’ve seen the Brexit uncertainty played out in an unusual way - applicants are starting to come back because they can see value, and with no clear end in sight over Brexit, people who were wanting to hold off are getting on with it and trying to move, putting upward pressure on properties coming to market.’
Prime Minister Theresa May has, however, announced that no-deal Brexit plans will go ahead despite the EU’s delay up until 31 October this year.
Meanwhile, the Foreign Secretary Jeremy Hunt has urged that it is an ‘absolute priority’ that the UK should leave the European Union by 23 May to avoid taking part in the important European elections.
GBP/AUD Forecast: Sterling Could Rise on Cross-Party Brexit Breakthrough
‘Aussie’ traders will be looking ahead to tomorrow’s publication of the Reserve Bank of Australia’s meeting minutes, and with any indications of a bullish tone about the Australian economy, this could see the AUD/GBP exchange rate rise.
Tomorrow will also see the release of Chinese economic data, with the most important being the FDI Foreign Direct Investment figures for March.
Sterling investors, meanwhile, will be awaiting tomorrow’s printing of the UK unemployment rate figures, which are expected to remain steady.
The GBP/AUD exchange rate will remain sensitive to Brexit developments this week, and any signs of cross-party talks offering a way out of the current political deadlock could prove Pound-positive.
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