Pound Sterling / Aus Dollar Outlook: Aussie Currency Determined to Push GBP/AUD Below 1.7 Level

Today we see the currency markets tell of a broadly stronger Aus Dollar:

• The Pound / Australian Dollar exchange rate is 0.56 pct lower; 1 GBP converts to 1.7071 AUD.
• The Euro / Australian Dollar exchange rate is 0.95 pct lower; 1 EUR converts to 1.4394 AUD.

The Australian Dollar / US Dollar exchange rate is 1 pct higher; 1 AUD converts into 0.9158 AUD.

Please Note: These are wholesale quotes; your bank will levy a discretionary spread when passing their retail rate. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering you more currency. Please learn more here.

Today's strong UK Services PMI reading has been unable to counter the story of a fast-improving Australian currency.

"Australian GDP released early this morning showed growth accelerated more than anticipated at 0.6% qoq. This has seen the GBPAUD rate continue to decline this morning," says Sasha Nugent at Caxton FX.

Nugent says the outlook for this pair could actually start favouring the Aussie:

"With the current rate 1.7038 we could see the rate recover slightly more towards 1.71, however with positivity regarding the Australian economy beginning to build, sterling remains under some pressure."

Keep an eye on the movements of the headline AUD-USD rate

The headline AUD/USD exchange rate will remain the ultimate driver of the smaller GBP/AUD cross rate.

A near-term outlook note on AUD issued by Emmanuel Ng at OCBC Bank suggests that Aussie gains could run into resistance soon:

"We remain on the sidelines with respect to the AUD-USD in the interim. The 55-day MA (0.9114) remains a near term cap while the nearest floor is expected at 0.9000."

This scepticism is shared by Gareth Berry at UBS:

"With the bearish trending indicators in place, any further recovery will find resistance at 0.9233. The risk is for resumption of downside, with support at 0.8973 ahead of 0.8848."

Ahead, the markets are still watching the situation in Syria, some test missiles are lending here and there; yet in the lack of a clear declaration, the markets are back to their idiosyncratic catalyzers.