The GBP to AUD interbank exchange rate has gained in the last day, in part ahead of Australia’s unemployment statistics for December, released this Thursday 23rd at 00.30 GMT.
It’s forecast that joblessness Down Under rose by 0.1% last month, up to 5.3%, while Australian companies are predicted to have created just 15,000 new positions, from November’s 39,900 gains.
If these forecasts are accurate, they would suggest that Australia’s job market has slowed, further away from the Reserve Bank of Australia’s (RBA) target jobless rate of 4.5%.
This, combined with Australia’s ongoing bush fires, may convince the RBA to cut interest rates below their current 0.75%, when the central bank next meets on February 4th. Historically, lower interest rates tend to weaken the value of the AUD.
Another factor why the sterling vs Australian dollar interbank exchange rate has gained, is because there have been reports of a new coronavirus in China, Australia’s closest trading partner.
Seemingly, over 200 people in the southern city of Wuhan have been struck by a similar type of virus to the SARS that killed 700 people in 2003.
This has weakened the Australian dollar, because if China imposes a quarantine, and bans China’s citizens from travelling abroad, then fewer Chinese tourists could visit Australia this year. Chinese visits are a significant driver of Australia’s tourist industry.
For more information on AUD exchange rates for an upcoming currency transfer, you can email me, Daniel Johnson, using the form below.