Has the British pound peaked against the Australian and New Zealand dollars?
The British pound versus Australian dollar exchange rate is 0.05 pct down on Friday evening's close at 1.6417.
The pound versus New Zealand dollar rate is 0.3 pct lower at 1.9263.
NB: The above quote is taken from the wholesale spot market - your bank will affix their own discretionary spread to the above figures. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering you more currency. Please find out more here.
End of the pound's gains against the Australian dollar?
The Australian dollar (Currency:AUD) certainly remains under pressure; however GBP gains versus the Australian currency have been curtailed by last week's Bank of England action.
However, all is not lost for sterling.
Today's Australian jobs data disappointed and reminds us of the scope for interest rate cuts which could further undermine the Australian currency.
"Chinese stocks felt the heat last night and with AUD/USD plumbing the lowest levels since the summer of 2010, the AUD continues to find it tough going across the board. Data last night didn’t help the AUD, as a fourth monthly contraction in jobs advertisements raised further concerns over the health of the Australian economy," says Richard Driver at Caxton FX.
GBP/AUD is trading just above 1.64 this morning and according to Driver sterling could well enjoy a bounce in the sessions ahead.
Importantly for GBP-AUD we note the Australian dollar remains pressured versus the US dollar.
Luc Luyet, Senior Analyst at MIG Bank says of AUD/USD:
"In the medium-term, the break of the strong support at 0.9388 (04/10/2011 low) opens the way for a further medium-term decline. The break to the downside out of the long-term symmetrical triangle (see the daily chart using our chart tool) suggests a move towards 0.8236.
"Key supports are at 0.8771 and 0.8067. A significant resistance now lies at 0.9345 (26/06/2013 high)."
Both the pound and New Zealand dollar are struggling
The pound reached this year's highs against the New Zealand dollar (Currency:NZD) on the 20th of June; GBP has weakened since then suggesting the good times could be over for now.
"GBP/NZD has stabilised after its post-BoE sell-off but a recovery doesn’t look imminent," says Richard Driver at CaxtonFX, "Neither of these currencies is particularly in vogue at present."
Indeed, the NZD continues to struggle as a result of QE3 tapering bets, while the latest dovish statement from the BoE’s Monetary Policy Committee has put sterling well and truly on the defensive.
NZ data last night revealed house prices cooled off a little, which reduces the pressure on the RBNZ to raise interest rates.