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Australian Dollar to Pound Exchange Rate (AUD/GBP) Drops -0.8% after Cautious RBA Bulletin

Australian Dollar Exchange Rates

Uninspiring RBA Outlook Triggers Australian Dollar to Pound Exchange Rate Decline

The Australian Dollar to Pound exchange rate has fallen by -0.8% on 15th March, following a disappointing Reserve Bank of Australia (RBA) bulletin release.

The report showed that RBA policymakers have no intention of committing to immediate adjustments to monetary policy.

This cautious approach comes as the RBA warns about steady but slow economic growth in Australia, along with inconsistent inflation rate movement.

Pound to Australian Dollar Exchange Rate Rises 0.8% on Hopes for UK-US Tariff Exemption

The Pound to Australian Dollar exchange rate has risen by 0.8% on 15th March, following news of a meeting aimed at granting the UK exemption from US tariffs.

International Trade Secretary Liam Fox has met with US Trade Representative Robert Lighthizer in Washington and both men were optimistic afterwards.

Mr Fox reflected on the historic relationship between the UK and the US, saying;

‘Ambassador Lighthizer and I enjoyed a constructive meeting that touched on our shared ambition for a far deeper trade relationship both now and once the UK has left the EU.

We also spoke about the United States’ planned imposition of tariffs on steel and aluminium’.

On the US side, Mr Lighthizer said;

‘Secretary of State Fox and I had very productive discussions on how to deepen our already extensive trade relationship – both now and when the UK leaves the EU’.

Although the meeting hasn’t guaranteed that the UK can dodge the metal tariffs when they activate on 23rd March, it has raised trader expectations for such an outcome.

Australian Dollar to Pound Forecast: AUD/GBP Exchange Rate could Rise on RBA Minutes and Jobless Rate

The Australian Dollar may be able to regain lost ground against the Pound next week Reserve Bank of Australia (RBA) minutes and jobless rate figures are released.

The RBA’s minutes for its latest meeting will be out on 20th March and could boost the Australian Dollar if they suggest better economic conditions.

More concretely, jobs data out on 22nd March is tipped to show a 25.1k rise in the number of employed persons, as well as more people in full-time employment.

The unemployment rate for February isn’t expected to change from 5.5%, but higher employment could still bring a late-week boost to the AUD/GBP exchange rate.

There will also be high-impact UK economic data out next week, which could keep Pound to Australian Dollar exchange rate movement in close contention.

UK inflation rate figures will be out on 20th March, followed by jobs stats on 21st March and the month’s Bank of England (BoE) interest rate decision on 22nd March.

If inflation falls and wage growth rises then the Pound could rally, as this would be a step closer to the pace of earnings growth catching up to the rate of inflation.

If BoE policymakers give positive forecasts for UK economic growth in the future, like with the spring statement, then the GBP/AUD exchange rate could pick up.