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.

About

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


« Previous Story

Risk-Off Sentiment, Poor Data Sees AUD/GBP Dip

Next Story »

Australian Dollar (AUD) Soft against US Dollar (USD) as Turnbull Considers Early Election Call


Disclaimer: Currency-Converter.com.au and its data provider, TorFX, make no claims regarding the validity or exactness of the information provided in on this site and will not be held liable for any use, interpretation, or other implementation of the information provided. Currency-converter.com.au make no warranties, express or implied, as to results to be obtained from use of such information, and make no express or implied warranties of condition, quality, performance, merchantability or fitness for a particular purpose or use. Currency-converter.com.au shall not have any liability for the accuracy of the information contained in the services provided or ommissions there in which are made available on a free, as-is basis. None of the aforementioned parties shall be liable for any third party claims or losses of any nature, including, but not limited to, lost profits, punitive, consequential, special, incidental, indirect or similar damages even if advised of the possibility of such damages. Rates offered are interbank rates and may not be the same as offered by your financial institution, and do not include commissions. Rates shown on this site will vary from those provided by TorFX or other providers linked to from this site.