GBP/AUD Exchange Rate Rangebound as Australian Employment Figures Increase
The Pound Australian Dollar (GBP/AUD) exchange rate is steady today and is currently trading around AU$1.8166 on the inter-bank market.
The Australian Dollar (AUD) stabilised against the Pound (GBP) following this morning’s publication of the Australian employment change figures for March, which came in better-than-expected at 25.7K.
These were followed by the Australian unemployment rate figures for March, which edged higher at 5.0%.
Australian fulltime employment figures for March also improved, soaring up to 48.3K against February’s dismal -7.3K.
Callam Pickering, an Economist at the global job website, Indeed, was optimistic about Australia’s employment figures, saying:
‘A solid set of employment figures, dominated by full-time roles, suggests that households and businesses may have to wait a little longer for rate cuts. From the perspective of policymakers, particularly the Reserve Bank, this will be viewed as a positive report.’
Australia’s closest trading partner, China, also showed some positive developments with the Chinese foreign direct investment figures for March rising to 6.5%.
GBP/AUD Exchange Rate Steadies as UK Retail Sales Soar
The Pound, meanwhile, has benefited from soaring year-on-year retail sales figures for March, which shot up against last year’s 4.0% to 6.7%.
Rhian Murphy, the Head of Retail Sales at the Office of National Statistics (ONS), commented:
‘March’s mild weather boosted sales, with food shops also recovering after a weak February. Over the longer term, department stores were the only shop type to see their sales shrink.’
Monthly retail sales figures for March also rose above expectation to 1.1%.
Brexit news, meanwhile, has been slow as many British MPs are on their parliamentary Easter recess.
Economists at the retail bank, BNP Paribas, commented:
‘Apart from the fact that no-deal Brexit is now less likely, the path ahead is as unclear as ever. A deal (and likely a softer Brexit) still seems more likely than not. But we are sceptical that this will happen any time soon.’
GBP/AUD Forecast: Sterling Could Rise on a Cross-Party Brexit Consensus
Tomorrow will see Australian and UK banks closed for the Good Friday bank holiday.
UK’s Brexit developments are likely to be few and far between, with many MPs temporarily inactive over the holiday period.
However cross-party between Labour and the Conservatives are set to go on, but hopes are slipping as the two parties appear to be drifting further apart.
‘Aussie’ traders will be looking ahead to Wednesday next week, which will see the publication of the Australian Consumer Price Index figures for the first quarter.
The GBP/AUD exchange rate will remain sensitive to Brexit developments into the Easter holidays, and any sudden developments that are favourable to a consensus between the two parties could prove Pound-positive.