The pound to Australian dollar exchange rate is 1.594% lower on the day with 1 GBP = 1.5698 AUD. The pound to New Zealand dollar exchange rate is 1.818% lower with 1 GBP = 1.9439 NZD. Risk appetite returned in force last night to help the Australian dollar, forcing GBP AUD five cents lower. "A fourth consecutive contraction in Australian consumer sentiment data failed to dent the aussie dollar’s rebound. A huge Chinese trade surplus figure improved the prospects for the aussie but the key factor driving the aussie’s outperformance was the US Federal Reserve’s signal that it will keep US monetary policy loose for the next two years. This keeps the carry trade to the aussie dollar very much on," says Richard Driver in an exchange rate note from Caxton Fx. Pound New Zealand dollar The New Zealand dollar mirrored the aussie dollar in response to the Fed’s statement, pushing this pair six cents lower. "The kiwi spiked by six cents against sterling on the Fed’s announcement, and this pair is now ten cents off its recent highs. The volatility we are seeing at present is pretty incredible and this just emphasises the importance of timing in foreign exchange transactions," says Driver.

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