The Pound to Australian Dollar exchange rate is expected to move on Tuesday mainly due to UK economic data. The key release will be the UK’s CBI industrial trends orders report for June. This index is predicted to improve slightly from -30 to -29.
Even though the index is forecasted to rise, it will still remain in negative territory. This could put pressure on the Pound during the European trading session on Tuesday.
On the other hand, there is no major economic data scheduled for Australia on Tuesday. Because of this, the Australian Dollar is likely to be influenced more by overall market sentiment. If investors remain cautious, the risk-sensitive Australian Dollar may weaken further.
Daily Market Summary
On Monday, the Pound to Australian Dollar (GBP/AUD) exchange rate increased. Both the UK and Australia released their preliminary PMI data, but market sentiment was generally negative.
At the time of writing, GBP/AUD was trading near AU$2.0945, which is about 0.5% higher than Monday’s opening rate.
The Pound showed mixed movement against most currencies on Monday. The UK’s services PMI rose to 51.3, a three-month high, slightly above the previous 50.9 figure and matching market expectations. This helped support the Pound.
The UK’s manufacturing PMI also improved, rising from 46.4 to 47.7. While this was better than expected, it remained below 50, indicating contraction in the manufacturing sector.
Despite these positive indicators, the Pound mostly gained against riskier currencies due to a cautious market mood.
The Australian Dollar weakened against most major currencies on Monday, despite some strong domestic PMI data. Australia’s services PMI rose from 50.6 to 51.3, and the manufacturing PMI held steady at 51 instead of falling to 50.5 as expected.
Both sectors remain in growth territory, but this failed to support the Australian Dollar. The currency came under pressure because of a negative market environment following US strikes on Iran over the weekend.
