GBP/AUD Exchange Rate Flat Following UK Housing Data
The Pound Australian Dollar (GBP/AUD) exchange rate is stuck in a narrow range this morning as markets reacted to the UK’s latest housing data.
At the time of writing the GBP/AUD exchange rate is currently trading at around AU$1.7887, leaving the pairing virtually unchanged from this morning’s opening rate.
Pound (GBP) Muted as House Prices Slip
The Pound (GBP) is rangebound against the Australian Dollar and the majority of its other peers this morning, following the release of the UK’s latest housing data.
According to Halifax’s House Price Index, house prices declined 0.3% to £237,110 last month after a 0.5% expansion in May.
Unsurprisingly, Brexit uncertainty continued to play a role in the dip, with both buyers and sellers seeking greater clarity before making any commitments.
Russell Galley, Managing Director at Halifax, said:
‘One of the major restraining factors on the volume of transactions in the market continues to be the very low level of stock for sale.
‘With the ongoing lack of clarity around Brexit, people will be looking for more certainty in the coming months, both to encourage them to list their property and to create the confidence needed to encourage buyers.’
Australian Dollar (AUD) Struggles as US Payrolls Eyed
Meanwhile, the Australian Dollar (AUD) struggled to find support this morning amidst a lull in market risk appetite.
This comes in the run up to this afternoon’s US non-farm payroll report, which is expected to be the main market mover today.
AUD investors will be watching for any signs that the US jobs market is slowing, with a weaker-than-expected payrolls report likely to prompt a risk-off reaction in markets as it boosts concerns of a slowdown in the US economy.
GBP/AUD Exchange Rate Forecast: UK GDP to Slide Again in May
Looking ahead to next week’s session, we expect to see the Pound Australian Dollar (GBP/AUD) exchange rate come under pressure following the release of the UK’s monthly GDP figures.
Economists forecast that growth in the UK will have slumped again in May, further stoking expectations that the UK economy is on track to contract in the second quarter.
Meanwhile, the ‘Aussie’ may face some headwinds at the start of the week as analysts predict that Australian business confidence will have weakened in June.
However despite this we still expect to see AUD exchange rates trade fairly robustly next week if the recent uptrend in commodity prices persists.