Pound to Australian Dollar exchange rate drops as China posts better than expected export data
Pound to Australian dollar exchange rates have slipped below 1.80, as continued uncertainty over Brexit weighs on sterling. The Australian dollar has performed better because of some improved Chinese economic data overnight. Year on year Exports from China posted a 10.3% gain, compared to an expectation of 2.9%. Will GBP/AUD find its way back over 1.80?
The strong news for the Chinese economy was very pleasing for the Aussie as it neutralises many of the recent concerns over the global economic outlook. The Chinese currency had been much weaker as investors concern over increasing trade tariffs between Beijing and the US presented a threat to the global trade order.
Up ahead we could see changes in this situation, the sudden reversal of sentiment overnight is a prime example of how quickly and volatile the situation is on China and the Trade Wars. Only at the beginning of the week we saw the pound to Aussie spiking on the uncertainty of increasing trade concerns, today the market is much calmer.
Stock markets in the US are up, as is Oil, in a further sign of global confidence growing. This may have helped the pound to Australian dollar rate to drop below 1.80, confidence has therefore been restored to a degree.
Pound to Australian Dollar forecast: UK GDP data released Friday
Looking further ahead, whilst there are no key dates set for Brexit news, the potential for some headlines to change market sentiment persists. The prospect of no-deal has seen the pound weaker and with little immediately on the calendar to suggest a change, in terms of news to drive the levels higher, the pound will take cues from other news.
Friday is the latest UK GDP (Gross Domestic Product) data which may see more news for the pound. Recent news had suggested that the UK economy might weaken further ahead. This news may be closely monitored for news on the latest sentiments. If you would like to learn more or have an upcoming currency transfer and would like to save money when compared to using your high street bank, please feel free to contact myself directly using the form below.