GBP/NZD Exchange Rates Breaks 2.0 Level, AUD at Inter-Year Highs

The British Pound is on the front foot again today thanks to this morning's positive surprise from the ONS. Q2 GDP was revised higher to +0.7 pct, analysts had expected the reading to stay the same at +0.6 pct.

Pound / Australian Dollar Exchange Rate: Chinese data can't stop the gains

Today the GBP/AUD is at multi-year highs again - the last time we saw these levels was way back in August 2010.

Nevertheless, daily volatility remains:

"The GBPAUD closed lower yesterday as a result of better Chinese PMI figures. However over the last six months the GBPAUD rate has been trending upwards and we still expect this trend to continue," says Sasha Nugent at Caxton FX.

Overnight the Aus Dollar popped higher after an Chinese official newspaper quoted a state economist saying the PBOC may cut RRR in coming months.

"The AUD has popped up 20 pips against the US Dollar on the headlines, running into resistance now near 0.9040," reports Sean Lee at FXWW. This also saw GBP/AUD move higher.

Pound / New Zealand Dollar Exchange Rate: Best Levels Since June

The British Pound has risen steadily over the past 4 trading days to achieve the best levels in GBP/NZD witnessed since June this year. (Click the graph to enlarge).

The gains come despite yesterday's spirited attempt by the Kiwi Dollar to reclaim the initiative, Sasha Nugent at Caxton FX says:

"After positive Chinese PMI figures showed an improvement in manufacturing, the kiwi took advantage and gained strength against GBP last session. Tainted milk products are still an issue for New Zealand with Fonterra (the biggest dairy producer) having to suspend operations in Sri Lanka.

Nugent believes there are more gains ahead for the British Pound: "With this dairy issue lingering, the NZD will struggle to strengthen against the continued stream of positivity in the UK."

Aus Dollar versus NZ Dollar

Emmanuel Ng at OCBC gives us a quick run down on the outlook for the AUD/USD exchange rate:

"AUD-USD chopped higher progressively on Thursday past 0.9000 with the China PMI providing the initial impetus for aussie strength. In the near term however, we expect the pair to remain locked up in recent ranges pending further global cues with 0.9000 continuing to serve as a short term anchor. On the upside, the 55-day MA (0.9187) may continue to cap while the 0.8915 area may cushion near term dips."