Sterling vs Australian and New Zealand dollars: Can GBP end the week on a high?

In early afternoon in London we see:

• The pound to New Zealand dollar exchange rate is 0.6 pct higher at 1.9513.
• The pound to Australian dollar exchange rate is  0.26 pct up on last night's close at 1.6884.

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Can sterling end the week on a high vs the Aus dollar?

"Sterling has been on a downward trend so far this month, but this week we have seen that change and another close higher will mark a nice recovery for the pound," notes Sasha Nugent at Caxton FX.

Today's GDP data came in-line with expectations which has further strengthened the pound's base.

Key points for the Australian dollar next week include RBA Governor Glenn Stevens delivering opening remarks at a conference in Sydney.

On Thursday, September building approvals will be released and ANZ Research advise that they expect a solid increase.

"Low interest rates, tight supply/demand fundamentals and house price gains which have driven stronger housing sales are likely to support increased residential construction activity," say ANZ.

September credit data are also out.

New Zealand dollar under pressure today

The NZ dollar is feeling the heat right across the currency markets, as observed by Sean Lee at FXWW:

"NZD/USD has broken below overnight lows at .8320 and AUD/NZD is testing daily highs near 1.1550.

"EUR/NZD is still looking very interesting and the break above 1.6570 100-DMA makes it look even more bullish.

"If USD/JPY breaks cleanly below 97.10 then NZD/JPY selling will surely pick up pace as well."

Worrying the NZ dollar was RBNZ Governor Wheeler who has said he is concerned about the effect higher rates will have on the currency.

"Although the Governor doesn’t see a case to intervene just yet, he said he was concerned that a stronger kiwi would damage exports. A good week for the GBP/NZD rate with the current rate now above 1.95 after closing just below 1.94. It won’t be easy for sterling to maintain these gains, but a solid GDP figure will certainly help," says Nugent.