GBP in impressive bounce-back against the Australian dollar, mining expansion delay is a worry

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Category: Australian Dollar News

Written by Will Peters

International Money Transfers at our sister site

Today's latest news concerning the performance of the British pound against its Australian counterpart.

The pound vs Australian dollar exchange rate is 0.46 pct higher than at Tuesday night's closing level, GBP-AUD is at 15129 at 11:25 in London.

Could this be the start of an improvement for sterling after three poor months? A new exchange rate forecast note from Westpac suggests it could be.


This morning sterling bounced back impressively against the aussie dollar (Currency:AUD), which struggled as a result of a delay to mining expansion.

"There was the news last night that mining giant BHP Billiton has put a $30bn Australian mining expansion on hold, raising wider questions over the future of the mining boom that has been so supportive for the Australian economy. Sterling is now trading up above 1.51 and it appears that the improved sentiment towards the AUD, as a result of the neutral stance within the recent RBA minutes, was a temporary respite," says Richard Driver at Caxton FX.

Elsewhere, GBP-NZD resumed its uptrend as the market looks ahead to tonight’s Chinese manufacturing number. 

"The New Zealand dollar fell out of favour yesterday, ahead of tonight’s data which is expected to highlight ongoing weakness in the Chinese manufacturing sector and economy in general. This pair has plenty of room to climb and we should see it regain the 2.00 level in the next month or so. Near-term prospects will be driven by the content of this evening’s Fed minutes," says Driver.