Australian Dollar Ekes out a Rise against Pound Sterling (AUD-GBP) Today after TPP Deal Success is matched with RBA Rate Freeze

Cause for ‘Aussie’ Celebration as Markets are Bolstered by TPP Finalisation; RBA Policy may change Accordingly

Having suffered through a rough patch in the AUD-GBP exchange rate last week, the Australian Dollar has achieved some much-needed relief today thanks to the agreement of 12 nations on the 5-year-in-the-making Trans-Pacific Partnership (TPP), which was signed yesterday. While certain agreement members such as Canada have met the news with a cold reception, the Australian perception of the at-times secretive arrangement has been broadly positive and has resulted in today’s 0.4686 result recorded against the Pound Sterling.

Elsewhere, the Australian Dollar has been aided by the Reserve Bank of Australia’s (RBA) decision to freeze the Australian interest rate at 2%; although some economists have forecast rate cuts in the coming months, this recent agreement that offers the potential to cut 98% of tariffs on Australian exports may have the power to stay the RBA’s hand from any further cuts before the end of the year, at least.

In addition to the rest of the ‘Aussie’-supportive factors that have been seen today, the antipodean currency has also benefitted from a rise in the price of copper recently.

The Pound has fared relatively well against its competitors today, although the only domestic data has been low-impact and mixed in its portrayal of the UK economy.

Construction and Production to Settle AUD-GBP Victor in Near-Future; Unfavourable UK Predictions so Far

In the future of the AUD-GBP exchange rate, movement is most likely to come from the AiG Performance of Construction Index for September, the UK annual Industrial Production and Manufacturing variant for September and the NIESR UK GBP Estimate for September.

For the Australian domestic result, no forecasts have been made. However, the Australian economy has recently been struggling to find a replacement sector for the much-depleted mining industry that has been crippled by the commodity crash and the prospects of reduced demand from a ‘slowdown’ afflicted China. With this in mind, both services and construction data from Australian industries are been keenly eyed by investors, so a strong result in tonight’s AiG result may solidify the current ‘Aussie’ lead.

For the Pound, industrial growth is forecast, but a -0.2% reduction in the manufacturing outcome is also on the cards. No predictions have currently been made for GDP estimate.