GBP/AUD at Six-Month High, GBP/NZD Highest Since Brexit
17 November 2017 by News DeskCurrency experts FC Exchange discuss the pound's rapid advances against the Australian and New Zealand dollars.
The pound achieved impressive gains on Friday against both the Australian dollar (GBP/AUD) and New Zealand dollar (GBP/NZD) as markets bought sterling and sold other currencies such as the US dollar. Risk-off mode struck the market, allowing the pound to New Zealand dollar exchange rate to make rapid advances, hitting the highest level since Brexit at 1.9535 interbank. Meanwhile, the Australian Dollar reached a six-month high, residing slightly under a one-year high at levels of 1.7565.
The Kiwi commodity currency has come under pressure of late following the election which yielded no clear winner. When the Labour party secured a coalition, the currency softened further on account of changes the new government could implement. These changes could continue to weigh on the NZD exchange rate if they create problems for the Reserve Bank of New Zealand (RBNZ) and see interest rates left lower for longer. Additionally, economic data has shown that New Zealand’s manufacturing activity has slowed in October, yet it’s too soon to see the impact of the new government on economic activity.
Investor sentiment has ebbed today following reports that Special Counsel Robert Mueller had obtained a subpoena for US President Donald Trump and documents relating to Russia, investigating the possible collusion.
The GBP/AUD exchange rate is currently trending +0.89% higher at 1.7550. The GBP/NZD exchange rate is trading at levels of 1.9509, an advance of +1.34%.
Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.
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