AUD/GBP Exchange Rate set to make longest run of weekly losses in 28 years

Published: 13 Dec at 4 PM Tags: Dollar, Pound Sterling, America, UK, Australian Dollar, New Zealand Dollar, Australia, New Zealand, USA,

The Australian Dollar is on course to make its longest run of weekly losses in 28 years after the Reserve Bank of Australia continued his efforts to talk down the currency which he deems as ‘overvalued’.

Economists are now predicting that the GBP/AUD rate reach the 2.00 mark and against the US Dollar the ‘Aussie’ could fall as low as 85 cents, a target that Governor Stevens said would be a more ideal level for the currency to trade at. In an interview Mr Stevens said that a weaker currency was preferable over lower interest rates.

“Comments from the governor to the media this week continue ongoing, concerted RBA campaigns to ‘jawbone’ the Australian dollar lower,” said the chief economist at HSBC, Australia, based in Sydney. “While it is clearly not the only factor at play, it is arguably having some impact, with the Australian Dollar trading lower,” he said.

The ‘Aussie’ did manage to regain some ground against the Pound later in the session after economists deemed the UK currency’s recent gains as over done. Traders chose to ignore data which showed that UK house prices hit a record high and construction output increased.

The ‘Kiwi’ pushed further beyond a five-year high against its Australian relation after the New Zealand Central Bank said that it had left interest rates unchanged and hinted that it will reduce stimulus measures as the economy continues to improve. A positive manufacturing report also boosted demand for the currency.

As of Friday, 13th December 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP USD exchange rate was 1.6294, GBP AUD exchange rate was 1.8185, and GBP NZD exchange rate was 1.9735.

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