Pure FX Blog

9 August 2017

Pound Hits 1-Week High Versus AU Dollar, as Aussie Confidence Drops

The pound to Australian dollar interbank exchange rate has hit close to a a 1-week high today, at 1.6516, as Australian consumer confidence has fallen in August. Image credit: Tracey Pearce-Jordan.

The pound to Australian dollar interbank exchange rate has hit close to a a 1-week high today, at 1.6516, as Australian consumer confidence has fallen in August. Image credit: Tracey Pearce-Jordan.

by Peter Lavelle

Welcome to Pure FX’s latest update of the pound to Australian dollar interbank exchange rate.

Sterling strengthens versus the Aussie dollar! The pound to Australian dollar interbank exchange rate has hit its highest in close to 1 week today, or since August 3rd, at 1.6516.

The pound has climbed against the Australian dollar, because consumer confidence Down Under fell -1.2% this month to 95.5, according to Westpac today, below forecasts for a +0.4% rise.

This has dragged down the AU dollar, in particular because this was the 9th consecutive month where Australian consumer consumer confidence was below 100.0, and so “pessimistic”.

According to Westpac, Australian consumers feel concerned about flatlining wage growth, higher electricity bills, as well as recent rises in mortgage rates, weighing on the AU dollar.

This has weakened the Aussie dollar, because if Australian consumers feel pessimistic, they’re less likely to spend, thereby weighing on Australia’s economic growth in coming months!

Australian dollar falls, as RBA cuts 2017 growth forecast

What’s more, the pound to Australian dollar interbank exchange rate has also risen, because the Reserve Bank of Australia has cut its 2017 economic growth forecast for Australia.

The RBA, Australia’s central bank, now predicts that Australia’s GDP will rise just +2.5% this year, -0.5% less than its previous forecast, thus weakening the Australian dollar.

To be specific, the Reserve Bank added that the Australian dollar is having a “modest dampening effect” on economic growth Down Under, thereby dragging down the AU dollar.

“Further exchange rate appreciation would tend to generate a slower pick-up in economic activity and inflation,” said Australia’s central bank, hence weighing on the Aussie dollar too.

With all this in mind, the pound to Australian dollar interbank exchange rate has hit this 1-week high today!

Get a free pound to Australian dollar exchange rate quote

Get a free pound to Australian dollar exchange rate quote to get our best exchange rate, and find out how much you could save with Pure FX.

You’ll get a pound to Australian dollar exchange rate guaranteed to beat your high street bank.

Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email peter.lavelle@purefx.co.uk.

This entry was posted in Market Commentary, What's The Best Time to Exchange Currencies? and tagged , , , . Bookmark the permalink.

Comments are closed.

Follow us on Facebook
Follow us on Twitter