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Australian Dollar Exchange Rate (AUD/GBP, AUD/EUR, AUD/USD) Forecast: UK Inflation Falls, Greek Negotiations Continue, US Advance Retail Sales Ahead

Australian Dollar Exchange Rates

Australian Dollar to Pound Sterling (AUD/GBP) Exchange Rate Forecast

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate began Tuesday’s European session trending higher after annual UK core inflation took a surprise slip from 1.2% to 1.0% in the month of March.

The Pound Sterling exchange rate sank as investors anticipated a further delay in any Bank of England (BoE) interest rate hikes in the near future.

Foreign exchange market analyst Joshua Raymond commented: ‘Clearly the UK remains on the cusp of deflation and this continues to put the Bank of England between a rock and a hard place when it comes to hiking interest rates.’

‘The threat of deflation is pushing market views for the BoE’s first rate hike further out and while today’s inflation reading will do little to change current forecasts, there were some fears we could see a deflationary print today.’

Australian Dollar to Euro (AUD/EUR) Exchange Rate Forecast

The Euro is finding it difficult to remain too buoyant, despite upbeat Eurozone data, on account of the ongoing Greek negotiations. Last week, finance ministers gave Greece six working days to come up with solid reform proposals ahead of the Eurogroup meeting on 24th April.

Furthermore, it appears as if the nation is dancing on the very precipice of running out of funds—an event that could result in an accidental Greek exit. Speculation that Greece may default on its next International Monetary Fund (IMF) payment is heightening and rumours that government officials have suggested a default is imminent have placed additional pressure on the Euro.

Australian Dollar to US Dollar (AUD/USD) Exchange Rate Forecast

The Australian Dollar to US Dollar (AUD/USD) exchange rate was trading softly on Tuesday as investors prepared for a rise in US Advance Retail Sales later in the session. It’s expected that the month of March will record 1.0% growth after February’s unfavourable -0.6% contraction.

However, any decline in retail sales could see the US Dollar to Australian Dollar (USD/AUD) exchange rate tumble.

Meanwhile, National Australia Bank (NAB) Business Confidence rose from 0 to 3 in March, while NAB Business Conditions also recorded a healthy rise from 2 to 6. However, NAB chief economist Alan Oster has suggested that the Australian economic recovery is weak—an issue that may come back to bite the ‘Aussie’.

Oster stated: ‘Low interest rates are continuing to have a notable impact on the particularly sensitive sectors of the economy, like investor housing, but pass through to the broader economy has been somewhat limited.’

The Australian Dollar to Euro (AUD/EUR) exchange rate is reaching 0.7171. The Australian Dollar to US Dollar (AUD/USD) exchange rate is trading at 0.7574. The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is trending in the region of 0.5172.