The last week has seen a resurgence for the Australian Dollar against Sterling. This is primarily due to Strong USD jobs data supporting the ‘Antipodean’
commodity currencies (AUD-ZAR-NZD), followed by GBP weakness on Tuesday due to poor manufacturing and production.
Yesterday saw AUD weaken again as GBP-AUD pushed 1.6340 from an initial day low of 1.6140. This could be an opportune moment for AUD sellers whilst the rate lingers between 1.63 and 1.65.
The next key points for AUD buyers were todays Employment Change (full and part time) and Unemployment rate. Employment change showed a marked improvement with a positive figure of 10,300 more people employed against a forecast of -700, for the month of June. The unemployment rate for June however bucked the trend and came back as a slightly poorer figure than forecasted, 5.7 against 5.6 (the lower the figure the better!). The rate increase indicates a lack of expansion in the Australian job sector.
As both figures were released simultaneously the overall outcome has been AUD weakness, as GBP-AUD moved towards 1.6550.
Looking further ahead to August 3rd is the Reserve Bank of Australia (RBA) Interest Rate decision. Should the RBA reduce the interest rate as indicated recently, we may see GBP-AUD test 1.70 and higher.
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