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AUD/GBP softer on UK GDP data and China worries

British Pound symbol

The Australian Dollar is on track to post a weekly decline against the Pound as investors embarked on a bout of profiteering and as positive GDP out of the UK bolstered Sterling.

GDP data released by the UK based Office for National Statistics showed that the UK’s economy expanded by 0.8% in the third quarter of the year and that there had been ‘fairly strong’ performances across the nation’s major economic sectors. The figure was higher than the previous quarter’s figure of 0.7%.

The report showed that the UK service sector has made a full recovery by growing by 0.7% and is now 0.4% stronger than it was prior to the downturn. Manufacturing is 8.9% below it and construction is 12.5% lower than pre-downturn levels. One bright spot for the construction sector was that it had expanded by 2.5% over the quarter, its second consecutive quarter of growth.

The Australian Dollar weakened after the GDP figures were published before firming slightly.

“The market is very neutral now, no one is really sure what direction we’re about to go here but you don’t really want to get caught short going into the weekend or excessively long either. This looks like profit taking and sometimes profit taking can change the market’s direction” said an Australian based Forex dealer.

Also weighing upon the ‘Aussie’ are the concerns over a possible slowdown in the Chinese and global economies. The worries have seen investors back away from the riskier assets and speculate further over when the US Federal Reserve will taper its monetary easing programme.

Current Australian Dollar Exchange (AUD) Rates

The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9589

The Australian Dollar/Euro Exchange Rate is currently in the region of: 0.6951

The Australian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5923

The Australian Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.1560

The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0427

The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4386

The Pound Sterling /Australian Dollar Exchange Rate is currently in the region of: 1.6883

The New Zealand Dollar/Australian Dollar Exchange Rate is currently in the region of: 0.8650

Correct as of 12:15 pm GMT