The Australian Dollar has been an in-demand currency against most peers today, but has failed to put a dent in the much stronger Pound.
The -0.3% AUD/GBP exchange rate decline is mainly a symptom of greater confidence in Sterling, rather than a reflection of present Australian Dollar weakness.
Stable Business Investment Figures Support Australian Dollar
Excepting its drop against the Pound, the Australian Dollar has otherwise advanced recently thanks to economic news.
Business investment growth has been reported at 1% in Q3, with the Q2 reading additionally being revised up to 1.1%.
Australian Treasurer Scott Morrison has given an optimistic assessment of the national economy, stating;
‘Our economy is strengthening and will continue to strengthen with the right policy settings in place’.
Pound Australian Dollar Exchange Rate Surges on Irish Border Hopes
As with Wednesday, the GBP/AUD exchange rate has risen today thanks to Brexit-related news.
The Pound’s gains stem from optimism that the issue of the Irish border could see a rapid resolution.
UK negotiators have been unable to reach an agreement on this issue so far, but there are growing hopes that a breakthrough is just around the corner.
This is mainly because UK PM Theresa May faces a series of deadlines in the near-future, which could put the pressure on to reach a deal of any kind.
May has until Monday to make viable proposals on the Irish border and other issues, so progress of some description is not impossible.
Showing how optimistic traders are about an imminent resolution, the Pound has remained in demand despite poor UK domestic data.
The GfK consumer confidence reading for November showed a drop from -10 points to -12, the worst result since the post-EU Referendum turbulence of 2016.
Rising Services Activity could Trigger AUD/GBP Rate Rise Next Week
Looking ahead, trader confidence in the Australian Dollar could increase on Tuesday.
This is because the Australian services index for November is out during the morning, and experts forecast a rise from 51.4 points to 52.5.
Unfortunately for AUD supporters, the GBP/AUD exchange rate could see another rise before the end of the current week.
The next UK data will look at manufacturing output in November and is on track to show higher activity during the month.
Recent Interbank AUD GBP Exchange Rates
At the time of writing, the Australian Dollar to Pound (AUD GBP) exchange rate was trading at 0.5617 and the Pound to Australian Dollar (GBP AUD) exchange rate was trading at 1.7796.