Can the British Pound Sterling (Currency:GBP) to Australian Dollar exchange rate maintain its recent positive momentum?
- The Pound to Australian Dollar exchange rate is 0.07 pct lower than seen at Friday night's closing level. GBP-AUD is seen at 1.7110.
- The Australian Dollar to Pound exchange rate is therefore at 0.5844.
Be aware: The above quotes are taken from the wholesale spot markets. Your bank will likely affix a discretionary spread to the figures when passing on a retail rate. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering more currency. Please learn more here.
Australian Dollar Forecasted to Maintain Strength... (in the near term)
A key question facing foreign exchange rate forecasters and commentators at present is whether the Australian Dollar is able to extend a recent rebound on the currency exchange rate markets.
Emmanuel Ng at OCBC Bank says:
"The AUD-USD may tilt slightly higher in the near term on a confluence of a softer broad dollar and potentially supportive sentiment towards the China economic landscape. On the CFTC front, net speculative AUD shorts increased ever so slightly in the latest week but the pair may look to challenge the 0.9230/35 resistance towards 0.928, while initial support is expected towards the 55-day MA (0.9113).
Chris Walker at Barclays suggests forex market participants anticipate a continued rebound in the Australian Dollar:
"Our economists expect the recent rebound in Chinese data on trade, industrial production and investment activity to have rolled into August, supporting the AUD.
"China’s monthly data indicators are key for Non-Japan Asia FX over the coming week. Our economists expect the recent rebound in trade, industrial production and investment activity to have rolled into August. That points to continued upward momentum in AUD/USD."
Gareth Berry at UBS is bearish on the Australian Dollar from a technical perspective:
"With the bearish trending indicators in place, any further recovery will find resistance at 0.9233. The risk is for resumption of downside, with support at 0.9038 ahead of 0.8848."