Introduction to GBP/AUD Exchange Rate
The pound sterling and the Australian dollar started the week broadly steady, with the GBP/AUD exchange rate firming slightly. This occurred as traders weighed a light UK calendar against a busier Australian docket featuring GDP and trade releases. The current exchange rate for Pound to Australian Dollar (GBP/AUD) is 2.06725, representing a 0.17% increase.
Economic Releases and Their Impact
The primary catalyst for movement in the Pound Australian Dollar exchange rate this week will likely be several UK and Australian economic releases. Mid-week, attention will turn to Wednesday’s finalized services PMI for August. As the UK’s largest and most influential sector, any signs of strength in services activity will be closely watched. Forecasts point to an uptick in the index from 51.8 to 53.6, which could lend Sterling fresh support and encourage a more upbeat outlook on the UK economy.
Upcoming Releases and Their Potential Impact
Later in the week, Friday’s retail sales index for July will be in focus. Economists expect the reading to slow sharply, falling from 0.9% to just 0.2%. Such a result may fuel concerns over consumer spending and economic resilience, potentially leaving GBP exchange rates under pressure as the week draws to a close. Turning to the Australian Dollar, on Wednesday, the country’s second-quarter GDP reading is expected to rise, which could support the ‘Aussie’ during mid-week trade.
Australian Economic Data
Thursday will see the publication of Australia’s latest balance of trade, which could also support the Australian currency during the second half of the week, should the data print to the upside. The current exchange rate for Euro to Australian Dollar (EUR/AUD) is 1.78735, representing a 0.04% increase, and the Australian Dollar to US Dollar (AUD/USD) exchange rate is 0.65513, representing a 0.12% increase.
Daily Recap of GBP/AUD Exchange Rate
The Pound Australian Dollar (GBP/AUD) exchange rate wavered last week amid a number of high-impact releases from Australia. At the time of writing, the GBP/AUD was trading at around AU$2.0617, down roughly 0.3% from the start of Friday’s session. The Australian Dollar (AUD) traded mostly flat at the beginning of the week following the Reserve Bank of Australia (RBA)’s latest meeting minutes.
Impact of RBA Meeting Minutes
Although the central bank confirmed that more interest-rate cuts could be required, uncertainty over the pace of easing helped keep AUD afloat. The ‘Aussie’ then remained on its upward trajectory following the release of July’s monthly CPI indicator. The index revealed that inflation jumped, which bolstered AUD exchange rates in the aftermath of the release. However, those gains were short-lived as a souring market mood sapped demand for the acutely risk-sensitive currency.
Conclusion
In conclusion, the GBP/AUD exchange rate is expected to be influenced by several economic releases from the UK and Australia this week. The services PMI and retail sales index from the UK, as well as the GDP and balance of trade releases from Australia, will be closely watched by traders. Any signs of strength in these releases could lend support to their respective currencies, while weaker-than-expected data could lead to decreased demand. As the week progresses, it will be important to monitor these releases and their impact on the GBP/AUD exchange rate.
