Australian Dollar Triumphs against Pound Sterling (AUD/GBP) after Surprise Unemployment Rate Drop

Australian Dollars (AUD)

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.

Australian Economic News: Forecast-Beating Unemployment Rate Bolsters AUD

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.

Pound Sterling (GBP) Unsettled by Continued BoE Caution

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).

AUD and GBP Exchange Rate Forecast: RBA Stability Review due Shortly, Minutes out Next Week

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.

AUD, GBP Exchange Rates

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.


Oliver has developed an expert understanding of the Forex market and the main drivers behind currency movement since entering the financial sector. He writes daily articles covering the latest shifts in currency for a range of sources online, as well as providing potential forecasts of future movement. This gives his followers all the information they require to protect their international money transfers from market exposure and currency risk. - View all posts by Oliver Meredew

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