Sterling AUD falls below 1.60 as Australian Jobs Data is more positive than expected

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The Sterling Australian Dollar exchange rate has dropped from its recent highs of 1.60 following a surprise drop in the unemployment rate. The figures beat expectations and the drop of below 5% was a very welcome surprise for the country. The unemployment rate fell to 4.9% in April from 5.2% in March according to the Australia Bureau of Statistics. This could really stop the recent weakness against the Pound and stop it at least in the short term from hitting 1.60 again. The recent news coming from the Chinese economy has impacted on the Australian Dollar but the unemployment figures have certainly helped.

Focus will be now centred on what’s happening in Europe. As Sarkozy has been replaced who was a key advocate for the recent Euro fiscal policy and Hollande comes in it will be interesting to see what happens next for the single currency. Also, news from Greece is that the political parties are struggling to form a government after the recent elections. Bankia the Spanish bank has also been nationalised so the news from Europe isn’t good which could again have a negative impact for the Australian Dollars meaning a good time to take advantage of the best exchange rate in months. The Australian Dollar Forecast still looks as though Sterling will break through 1.60 and the next target after that will be for 1.63 by the end of the month. The Bank of England interest rate decision is due out at 12pm today so all eyes will be on whether or nor the BoE will look at further QE. I personally think this in unlikely as the economy is still waiting for the revised UK GDP figures out towards the end of this month.

If you have a question about this report or simply a quote to compare exchange rates against your currency broker feel free to email me Tom Holian teh@currencies.co.uk quoting ‘ADF’ or phone me direct on 01494-787-478.