- GBP/AUD ends at 1.7931 on Wednesday
- Last available rate stands at 1.7771
- Australian Consumer Confidence Index comes in at better levels than expected
The GBP/AUD exchange rate started trading at around 1.7863 on Wednesday morning and ended the day higher at nearly 1.7931.
This strengthening of the GBP can mainly be attributed to the strong UK GDP growth reports that were released on Tuesday.
The report from the Office of National Statistics (ONS) on GDP data showed there was an increase to 0.3% in GDP growth between April and May.
The ONS used a different method to gather data this time around, and it believes the new approach delivers more accurate results regarding economic growth in the UK.
More good news came in when the National Institute for Economic and Social Research released an updated GDP growth estimate of 0.4% for the second quarter of this year, compared to the earlier 0.2%.
There was also some news that did not favor the GBP, however. British Chambers of Commerce Head of Economics Suren Thiru said: “While we still expect UK growth to have picked up in the second quarter as a whole, there remains little sign of a prolonged upswing in the UK’s growth trajectory.”
Strong Australian economic data was released on Wednesday, but continued support for the GBP ensured that there was no improvement in the AUD/GBP rate. The report in question was the consumer confidence index for July that was released by Westpac, which beat expectations of a drop from 102.20 to 100.00 by improving to 106.1 points instead.
A figure above 100 is an indication that more people are optimistic than pessimistic. Despite the unexpectedly positive reading, the AUD failed to strengthen against the GBP.