Aus Dollar vs pound sterling: GBP/AUD advances despite strong pro-AUD Chinese data

A look at the currency markets shows the pound sterling to Australian dollar exchange rate a shade higher at 1.6776.

The Aus dollar to sterling is thus at 0.5960. (The Aussie has actually started appreciating at the time of going to publication, be warned).

Note: These are wholesale inter-bank market rates. Your bank will affix a charge at their discretion, hence why you never receive anything close to the market rate. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering more currency. Please learn more here.

Sterling comes back, but Aus dollar bounce on the cards

Though the Australian dollar was supported by a spike in risk appetite yesterday, sterling still managed to claw back some of its recent losses on the back of upbeat British retail sales figures.

"Retail sales rose by 0.6% in September, supporting hopes of a strong third-quarter GDP figure. With no further economic releases due this week we could see the Aussie rebound slightly if risk appetite continues to improve," says Sasha Nugent at Caxton FX.

Chinese data is good, but Aus dollar fails to capitalise

The Chinese equity markets closed the week on a positive note.

Data showed that the Chinese economy grew 7.8% in the third quarter, the year-to-date industrial production and retail sales met the market expectations.

Hang Seng rallied to 23,364.47, while Shanghai’s Composite hit 2,203.29. PBOC fixed CNY at the record high of 6.1372 against USD; previous record high was at 6.1406 on October 16th.

"AUDUSD consolidated gains above 0.9600 in Sydney. Good Chinese data has been partially offset by comments from RBA Governor Stevens saying higher AUD is not sustainable, lower FX rates would help the economy," says Ipek Ozkardeskaya at Swissquote Bank.

Bullish momentum and risk-on environment remain AUD-supportive.

"Technically, AUDUSD trades above the upper-Bollinger band and the RSI stands at 75%; a downside correction would be healthy. First resistance is seen pre-96.50, option barriers should come into play above 0.9715," says Ozkardeskaya.