The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate weakened on Tuesday as the Reserve Bank of Australia surprised the markets by leaving interest rates unchanged at its March policy meeting. The Pound Sterling to Euro (GBP/EUR) exchange rate and Pound Sterling to US Dollar (GBP/USD) exchange rate firmed following the release of better than forecast UK data.
The Australian Dollar firmed against the majority of its most traded peers after the RBA left interest rates unchanged at 2.25%. Economists had been expecting policy makers to make a second consecutive rate cut of 25 basis points.
The Australian Dollar firmed against the majority of its most traded peers after the RBA left interest rates unchanged at 2.25%. Economists had been expecting policy makers to make a second consecutive rate cut of 25 basis points.
The Euro came under pressure after a report released early in the session showed that more investors expect the Eurozone to fall apart over the coming year. The Sentix compiled Euro Break up Index climbed to its highest level since the Cyprus bailout crisis of March 2013.
Sterling firmed against the US Dollar as it found support from a better than forecast construction PMI report. The Markit/CIPS PMI rose to 60.1, beating forecasts for a slight dip to 59.0 and was the highest level seen since October last year.
