British Pound to Australian Dollar Exchange Rate Forecast to Decline after Dovish BoE
As traders make the most of attractive selling positions created by the recent surge in precious metal prices, gold prices cooled significantly. This caused demand for the Australian Dollar to ebb as trader risk-sentiment dampened ahead of the publication of minutes from the most recent Federal Reserve policy meeting.
A quick foreign exchange market summary before we bring you the rest of the report:
On Saturday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
The live inter-bank GBP-GBP spot rate is quoted as 1 today.
At time of writing the pound to new zealand dollar exchange rate is quoted at 2.101.
Today finds the pound to us dollar spot exchange rate priced at 1.237.
NB: the forex rates mentioned above, revised as of 20th Apr 2024, are inter-bank prices that will require a margin from your bank. Foreign exchange brokers can save up to 5% on international payments in comparison to the banks.
The Pound Sterling to Australian Dollar exchange rate edged lower by around -0.2% on Thursday afternoon. After the Bank of England (BoE) opted to hold the cash rate, as most economists had expected, the Pound softened versus its major peers. Whilst the decision itself wasn’t the primary cause for the depreciation, the accompanying minutes were seen as dovish. All but one of the policymakers stated that they would not consider raiding the benchmark interest rate before inflationary pressures return. This could be a long wait given that low commodity prices are acting like a tax cut.
The Pound Sterling to Australian Dollar exchange rate is currently trending in the region of 2.1239.
Despite the fact that the Shanghai Composite Index ended the Asian session 3% higher after a long holiday break, the return to markets spooked investors. This is especially true given that the rise required government intervention which has thus far had only a temporary impact. The result of this has been dampened market sentiment which saw reduced demand for the high-yielding Australian Dollar. The Pound Sterling to Australian Dollar exchange rate was trending within the range of 2.1221 to 2.1381 during Thursday’s European session.
New Zealand Dollar to Australian Dollar Conversion Rate Predicted to Edge Higher ahead of NZ Card Spending
The New Zealand Dollar to Australian Dollar exchange rate ticked higher by around 0.2% on Thursday afternoon. Although cooling risk-appetite has had a detrimental impact on demand for the New Zealand Dollar, the ‘Kiwi’ (NZD) gained versus its Oceanic neighbour. The appreciation can be linked to the recent significant rise in dairy prices.
The New Zealand Dollar to Australian Dollar exchange rate is currently trending in the region of 0.9189.
Another headwind for the ‘Aussie’ (AUD) on Thursday was falling precious metal prices. When China’s equity market closed for a five-day holiday period precious metal prices soured. The downtrend today can be linked to traders locking profits after the surge opened up some attractive selling positions. The New Zealand Dollar to Australian Dollar exchange rate was trending within the range of 0.9172 to 0.9202 during Thursday’s European session.
US Dollar to Australian Dollar Commercial Exchange Rate Forecast to Trend Narrowly after Mixed US Labour Data
The US Dollar to Australian Dollar exchange rate was trending within a close range on Thursday afternoon. After a succession of less-than-ideal US ecostats caused traders to delay bets regarding the timing of a Federal Reserve benchmark interest rate hike, the US Dollar held a weak position versus its major peers. Mixed domestic data on Thursday has done little to provoke a US Dollar recovery. Initial Jobless Claims came in under the market consensus, but Continuing Claims were higher than expected.
The US Dollar to Australian Dollar exchange rate is currently trending in the region of 1.3903.
Looking ahead, Friday is likely to see heightened ‘Aussie’ volatility. Australia’s Home Loans and Investment Lending data has the potential to provoke changes. Market sentiment, commodity prices, China’s equity market and US Dollar positioning will all be a factor in ‘Aussie’ movement on Friday. The Australian Dollar is still holding a comparatively strong position versus its major peers so we may see a depreciation in response to trader profit taking. The US Dollar to Australian Dollar exchange rate was trending within the range of 1.3855 to 1.3953 during Thursday’s European session.
Pound to Australian Dollar Exchange Rate Lower Despite Mixed Australian Data
The Pound to Australian Dollar softened during the Australasian session despite the latest Australian data disappointing on some points. Home loans increased by 2.9% in August, less than the 4.7% expansion forecast by economists while Investment Lending slipped by -0.4%. The value of loans, however, jumped 6.1%.