The ‘Aussie’ (AUD) has made clear gains against the Pound Sterling (GBP) lately, owing to a highly supportive domestic data announcement. The Pound has conversely crumbled due to Bank of England (BoE) dovishness.
The appeal of the Australian Dollar (AUD) has risen dramatically in the eyes of investors of late, owing to the outcome of yesterday morning’s March unemployment rate result. Thanks to a rise in employment of 26.1k, the unemployment rate actually dropped from 5.8% to 5.7%, instead of rising to 5.9% as predicted.
Reacting to the news, Labor Employment Spokesman Brendan O’Connor was wary, pointing to the fact the rise was due largely to new part time roles:
‘Anyone who gets a job is a good thing … [but] it comes at the expense of the full-time jobs’.
The ‘Aussie’ rose by 0.9% against the Canadian Dollar (AUD/CAD) and 1% against the Pound Sterling (AUD/GBP) in the wake of the news.
The Pound (GBP) has been a poor prospect for investors recently, having slipped consecutively on the now-official status of the UK Referendum ‘In’ and ‘Out’ campaigns and the BoE electing to freeze the UK interest rate for the 85th month in a row.
The minutes were much of the same, with policymakers expressing concern at global economic slowdown and the turbulence caused by the approaching UK Referendum vote.
Pound losses included -0.3% against the US Dollar (GBP/USD) and -1% against the Australian Dollar (GBP/AUD).
The near-future will bring the announcement of the last Australian economic release of the week, which will be the Reserve Bank of Australia (RBA) financial stability review.
The review could send the ‘Aussie’ up if it factors in the recent positive outcome of the national unemployment rate.
For the UK, movement will be due shortly from the annual construction output result for February, which has been forecast to improve slightly with a shift from -0.8% to -0.51%.
Looking ahead to the coming week, the ‘Aussie’ could be shifted by Tuesday morning’s RBA meeting minutes, as well as a scheduled speech from Governor Glenn Stevens.
The UK’s first major economic event next week will be Wednesday evening’s claimant count change and unemployment rate for March and February, respectively. Forecasts have been for a reduction in the number of claims and a stagnation at 5.1% for the unemployment rate.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate was trending in the region of 0.5454 and the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending in the region of 1.8342 during the European trading session.
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