This afternoons US non-farm payroll figures could hinder the AUD further (Mike Vaughan)

AUDGBP Drops Again with Pound Support

Sterling has pushed back towards 1.85 this following the pounds slight blip last week as it continues its resurgence against the dollar since the lows of 1.445 last year. With continued speculation that the RBA will consider more monetary tightening in the first quarter of 2014 I believe the pound will push towards 1.90 during Q1. Short term the pound may have a couple of hurdles however, manufacturing figures last time out were not as strong as expected which will make for interesting viewing today, however the general picture in the UK seems to be improving and this is pushing levels against nearly all currencies to fresh highs.

For anyone buying AUD, or selling for that matter, you should not just focus on sterling and indeed issues across the pond need to be viewed with interest. The prospect of further tapering by the FED is also hampering the Aussie and with US non-farm payroll figures scheduled for 13:30 this afternoon this will also keep anyone with an interest in AUD on their toes. Bernanke and his counterparts at the FED have highlighted a sustained period of improved employment data before they consider their next approach as far as tapering is concerned. This will make this afternoons figures interesting, a positive reading could weaken the Aussie further.

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