AUD GBP/AUD rate move down

Sitemap Tools

Wednesday, 18 February 2009

We have an interesting array of data released this week from both the UK and Oz after we saw the GBP/AUD rate move down from a high of 2.215 last week to open this morning at 2.19. This move was mainly due to some surprising home and employment data from Australia where new home loans increased from 1.3% to 6.4% and employment change moved up 1.2k after it was expected to decrease by 18k. These releases outweighed the fact that consumer and business confidence fell twice as much as forecast and the consumer price index (CPI) moved down to 2.3%, showing that inflation is cooling even with hefty cuts in interest rates from the RBA.

As mentioned, this week is relatively heavy on the data front with the release of minutes from both central banks previous monetary policy meetings where we saw the RBA cut 100 basis points to 3.25% and the BoE cut by 50bps to leave the base lending rate at 1%. We also expect to see UK CPI cooling further towards the MPC’s 2% target with the release on Tuesday showing it dropping from 3.1% to 2.7%. We will also see further confirmation of the differences between the two economies with retail sales expected to grow in Australia whilst we should see a drop from 4% to 2% in the UK, showing how the recession is taking hold.

With this in mind we expect the Pound to have trouble moving up past 2.22 against the Aussie unless we see large scale unwinding of carry trades if investors look to dump riskier assets such as the AUD. Otherwise, we will most likely see the rate remain below 2.21 unless something unexpected happens.

» No Comments

There are no comments up to now.

» Post Comment

Only registered users can write a comment.
Please login or register.

< Prev		Next >

ECB Exchange rate

ECB Exchange Rates Currency EUR 2010-07-30
	USD	1.3069
	JPY	113.64
	BGN	1.9558
	CZK	24.763
	DKK	7.4501
	EEK	15.6466
	GBP	0.83670
	HUF	283.81
	LTL	3.4528
	LVL	0.7093
	PLN	4.0040
	RON	4.2654
	SEK	9.4705
	SKK	9.4705
	CHF	1.3660
	ISK	1.3660
	NOK	7.9705
	HRK	7.2447
	RUB	39.4514
	TRY	1.9768
	AUD	1.4500
	BRL	2.3042
	CAD	1.3504
	CNY	8.8557
	HKD	10.1498
	IDR	11720.52
	KRW	1550.64
	MXN	16.5578
	MYR	4.1703
	NZD	1.7996
	PHP	59.729
	SGD	1.7800
	THB	42.144
	ZAR	9.5650
		9.5650

AUD GBP/AUD rate move down

Who's Online

ECB Exchange rate