The Pound Australian Dollar (GBP/AUD) exchange rate has been struggling for direction since markets opened this morning as a lacklustre UK construction PMI did little to support Sterling.
At the time of writing the GBP/AUD pairing are trending around the AU$1.8641 level as the ‘Aussie’ continues to deal with the effects of the ongoing coronavirus situation in Australia.
Pound (GBP) Weakens as Construction PMI Misses Forecast
The Pound has found itself on a weaker footing this morning following the release of the latest construction PMI figures from the UK.
The construction PMI came in at 55.2 during August, missing forecasts of 56.9 and softening from 58.7 the month previous.
Usamah Bhatti, Economist at IHS Markit, commented on the latest PMI and what it could mean for the sector moving forward:
‘Evidence that the UK construction sector began to feel the impact of ongoing supply chain disruption was widespread midway through the third quarter of 2021. Growth rates for overall activity as well as the three monitored subsectors eased further from the recent highs earlier in the summer.’
‘Similarly, new business inflows have continued to increase at a marked pace, yet even here the rate of growth has eased to a five-month low. Supply chain disruption continued to disrupt activity across the UK construction sector, as demand for materials and logistics capacity outstripped supply.’
Australian Dollar (AUD) Clings to Previous Gains
The Australian Dollar had found itself clinging to any meaningful gains this morning as the US Dollar looks to stage a comeback.
Whilst the global market mood remains mixed, Australia continues to deal with an ongoing coronavirus outbreak across the country.
It comes as the state of New South Wales (NSW) continues to record cases totalling upwards of 1000 per day.
NSW Premier, Gladys Berejiklian held a press conference to discuss the prevalence of the virus, saying:
‘As far as dealing with the worst bits of the virus… October is the month where all of us will feel relief. All of us will feel we are on the home stretch.’
‘Certainly we almost feel that now, once we get over the peak of the number of cases I think people will feel much more positive about the next few weeks and people will start turning their minds to preparing their children for school, you know enjoying those things in life we haven’t been able to do for a long time.’
Pound Australian Dollar Exchange Rate: RBA Interest Rate Decision in Focus
Tomorrow will see all eyes on the latest interest rate decision from the Reserve Bank of Australia.
Whilst no policy changes are expected from the bank, investors will focus on the tone policy-makers choose to take moving forward.
Pound traders will be focusing on the latest Halifax House Price Index for August to drive movement in Sterling during tomorrow’s session.