GBP/AUD rates of exchange to be tested today with the UK economy under the microscope (Joshua Privett)

AUDGBP Makes Back Some Lost Ground From Last Week

The Australian Dollar remained relatively stable despite significant amounts of Chinese data being released overnight which normally causes volatility on GBP/AUD rates of exchange. 

A mixed bag of lower growth in industrial production but a rise in retail sales caused GBP/AUD to remain the 2.14 band.

Now it is a host of data to be released in the UK today which will be determining Sterling value and in-turn GBP/AUD for the coming days. Firstly, a look at average earnings as well as a gaze into the employment sector will likely produce similarly mixed results as shown above. Previously average earnings have taken hits but reductions in unemployment claims have balanced out the effect on Sterling.

The largest determinant for movement today will likely be the speeches given at the Bank of England Forum by various BoE members, including Governor Mark Carney.

With the Bank of England recent announcement that interest rates wouldn’t be rising until 2017 at the earliest, the speeches will likely centre around the main reason for a rate freeze – inflation.

In the press conference last week during the announcement the Bank of England members were able to dodge the harder questions posited by journalists, but in this forum setting questions can be fleshed out and have to be addressed.

Sterling’s value will swing wildly as confidence in the Pound is either lost of gained based on the solutions put forward by the BoE members for the current UK inflation situation. GBP/AUD will then fluctuate itself.

Anyone with a GBP/AUD requirement, either buying or selling can contact me today on 01494 787 478 and ask the reception for Joshua to discuss your situation and together formulate a strategy for your transfer. The speech will give us a better idea of Sterling value over the coming weeks, as inflation hearings rescheduled for next week will likely follow a similar pattern on the markets expressed today. jjp@currencies.co.uk