Australian Dollar to Pound Sterling (AUD/GBP) Exchange Rate Forecast to Rally on Australian Labour Data

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Pounds Sterling (GBP)

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate advanced by around 0.83% during Thursday’s European session.

After Australian economic data printed particularly positively, the ‘Aussie’ (AUD) strengthened versus the majority of its most traded currency rivals. Aiding the Australian Dollar appreciation was rising gold prices as geopolitical tensions in Europe weigh on investor risk-appetite.

The Pound Sterling, meanwhile, ticked higher versus many of its major peers in response to better-than-forecast domestic data. The advance has been somewhat sluggish, however, with the forthcoming general election hindering investor confidence amid political uncertainty.

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is currently trending in the region of 0.5217.

Australian Dollar (AUD) Exchange Rate Rallies on Positive Data

After having declined significantly during Wednesday’s European session, thanks to poor data out of China, the ‘Aussie’ advanced during Thursday’s European session thanks to much better-than-anticipated economic data results.

April’s Consumer Inflation Expectation came in at 3.4%; bettering the previous figure of 3.2%. Employment Change showed 37,700 newly employed in March, eclipsing the market consensus of only 15,000 newly employed. March’s Unemployment Rate bettered the median market forecast of a rise from 6.2% to 6.3%, with the actual result showing a positive decline to 6.1% unemployment.

‘Most of the improvement looks like it actually happened in February and not March,’ said Ben Jarman, a senior economist at JPMorgan Chase & Co. in Sydney. ‘We have had these decent size upward revisions in employment in February, which the ABS say is to do with technical changes in seasonal adjustment, you do have question marks over how much influence that had.’

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate dropped to a low of 0.5171 today.

Pound Sterling (GBP) Exchange Rate Edges Higher on House Price Balance

The solitary British economic data publication during Thursday’s European session printed positively, causing the Pound to tick higher versus many of its most traded currency competitors. RICS House Price Balance improved by 21% in March; bettering the median market forecast of 15%.

RICS Northern Ireland spokesman, Samuel Dickey, said; ‘Northern Ireland recorded the highest price balance of all UK regions during March and has the highest price expectations over the next three months.’

‘Whilst new instructions to sell increased last month, new buyer inquiries are also rising strongly, which is effectively creating a situation where we have under-supply and prices are rising as a result,’ he added.

The Pound’s appreciation has been somewhat sluggish, however, thanks to damp trader confidence as we draw closer to May’s general election. Fears of a dramatic policy overhaul are likely to see the Pound fail to sustain any significant gains until the election concludes.

Australian Dollar to Pound Sterling (AUD/GBP) Exchange Rate Forecast to Hold Gains

Given the lack of domestic data pertaining to either nation to curb the trend, and with the ‘Aussie’ holding substantial gains over its British counterpart, the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is likely to hold gains for the remainder of Thursday’s European session.

Friday’s European session could see heightened AUD/GBP volatility with several influential British data publications due for release.

The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate climbed to a high of 0.5232 today.

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