Pound to Australian Dollar Soars as BoE Holds Rates

Pound to Australian Dollar Soars as BoE Holds Rates

The pound to Australian dollar interbank exchange rate has hit this high today, in part because the Bank of England (BoE) voted to maintain UK interest rates at 0.75% yesterday. Before the decision, the financial markets were unsure if the central bank would vote to keep Britain’s borrowing costs steady or cut them, with odds placed at roughly 50/50. However, in the event, only two members of the BoE’s nine-person Monetary Policy Committee (MPC) voted to ease monetary policy back to its all-time low...
Euro Stronger Versus the Aussie Dollar But Coronavirus Fears Could Reverse the Trend

Australian Dollar Weakens in Spite of Higher Q4 Inflation Down Under

The Australian dollar remains on the back foot, even though Australia’s inflation statistics for Q4, between October and December, were surprisingly upbeat this week. According to the Australian Bureau of Statistics (ABS) yesterday, Australia’s price pressures in the last three months of 2019 reached 1.8%, above economists’ forecasts for 1.7%, and closer to the Reserve Bank of Australia’s (RBA) 2.0% mid-point target. In general, the Australian dollar tends to rise when inflation increases, because higher price pressures encourage the RBA to lift Australia’s interest rates,...
Pound Trading Higher but Markets on Alert as Fears of a Virus Pandemic Grows

Coronavirus Continuing to Effect AUD

According to reports overnight, there are now 4,515 people infected with the virus, up from just 291 cases on January 21st, while 106 deaths have been confirmed, compared to nine a week ago. In response, China has quarantined large parts of its territory, while growing numbers of Chinese are choosing to stay indoors. In turn, it’s possible that China’s economy might slow in early 2020. This has weakened the Australian dollar, first because if China’s economy slows, China’s appetite for Australian commodities like coal...
Pound Rallies Against the Australian Dollar After Strong Employment Numbers

Australian Dollar Outlook: Coronavirus Spreads

The GBP to AUD interbank exchange rate has strengthened, in part because China, Australia’s closest trading partner, continues to struggle with a coronavirus. According to the latest reports, 1,975 people are now infected with the disease, four times more than last week, while 56 people have died. In response, China is quarantining off increasingly large parts of its territory, and seeking a cure. The coronavirus resembles the SARS that killed close to 800 people in 2003. This has weakened the Australian dollar, first because...
Pound Pushes Higher Against the Australian Dollar on Recent Economic Divergence

AUD to GBP Rate Weakens as Australia’s Job Market Outshines

The sterling vs Australian dollar interbank exchange rate has weakened, because we’ve learnt that Australia’s labour market unexpectedly outperformed in December. According to the Australian Bureau of Statistics (ABS) today, Australia’s unemployment rate fell by 0.1% last month, to 5.1%, beating economists’ forecasts for joblessness to remain at 5.2%. In addition, Australian companies surprisingly created 28,900 new posts in December, far above financial markets’ predictions for 15,000 positions. These encouraging data suggest that Australian businesses continue to hire, in spite of the ongoing bush...
Pound Higher Against the Australian Dollar as Traders Digest Data and Asian Markets Slip

How Coronavirus Is Effecting the Australian Dollar

The GBP to AUD interbank exchange rate has strengthened, in part because of reports that a coronavirus is spreading through China. The virus, which originated in the southern city of Wuhan, has now reached major cities such as Beijing and Shanghai. This has weakened the Australian dollar, first because China is Australia’s closest trading partner. If the coronavirus weighs on China’s economy, Australia might be affected too. Also, if China imposes a quarantine on its citizens, fewer Chinese tourists might visit Australia this year, which...
Australian Currency Outlook to Be Driven by External Factors in Days Ahead

GBP to AUD Rate Gains Ahead of Australian Unemployment

The GBP to AUD interbank exchange rate has gained in the last day, in part ahead of Australia’s unemployment statistics for December, released this Thursday 23rd at 00.30 GMT. It’s forecast that joblessness Down Under rose by 0.1% last month, up to 5.3%, while Australian companies are predicted to have created just 15,000 new positions, from November’s 39,900 gains. If these forecasts are accurate, they would suggest that Australia’s job market has slowed, further away from the Reserve Bank of Australia’s (RBA) target jobless rate of...
GBP to AUD weakens as Javid signals UK/EU trade divergence

GBP to AUD weakens as Javid signals UK/EU trade divergence

The GBP to AUD interbank exchange rate has fallen over the weekend, in part because UK Chancellor of The Exchequer, Savid Javid, has said that he expects the UK and EU to diverge, in the upcoming trade talks. Speaking to the Financial Times, Mr. Javid said: "There will not be alignment, we will not be a rule taker, we will not be in the single market and we will not be in the customs union - and we will do this by the end...
Australian Dollar falls against Euro After Unemployment Ticks Higher

GBP vs AUD Strengthens as Markets Unsure If BoE Will Cut Rates

Sterling has strengthened versus the Australian dollar, in part because markets are increasingly unsure if the Bank of England (BoE) will cut UK interest rates, when the central bank next convenes on January 30th. Since late last week, investors have been raising the odds that the BoE may cut borrowing costs from 0.75% back to their all-time low of 0.5%. Although now, markets are also considering the possibility that the central bank might stay its hand. Pound Strengthens on Signs of “Green Shoots”, Ahead of...
GBP to AUD Steady as Markets Consider BoE and RBA Rate Cuts

GBP to AUD Steady as Markets Consider BoE and RBA Rate Cuts

The GBP to AUD interbank exchange rate remains supported at its current levels, in part because the financial markets are considering the possibilities that the Bank of England (BoE) and the Reserve Bank of Australia (RBA) could cut interest rates in the foreseeable future, although for different reasons. Looking at the UK first, the Old Lady of Threadneedle Street, as the BoE is affectionately known, could cut interest rates, because UK inflation fell further in December. According to the Office for National Statistics (ONS) on...