The AUDGBP exchange rate has finally broken out of its range as the Aussie Dollar caught a rally on the recent data releases. Yesterday’s consumer confidence figures were the highest since 2010 and today saw the jobs release for March coming in at twice the number of jobs added. The unemployment rate was also lower than forecast.
AUD to GBP trades at 0.5605 with a 0.1% move higher on Thursday and traders will try to create a larger uptrend in the Aussie currency with last year’s highs being above 0.5700.
Aussie Economy Gets Another Big Jobs Boost
The Australian economy saw another boost from its jobs report with the ABS reporting an increase of 70.7k March, which was more than double the 35k analysts had expected.
Western Australia was in front on a regional basis with an increase of 32k jobs, while Queensland was in second place, with an additional 23k jobs.
The unemployment rate was also better than forecast with a reading of 5.6% in March, a drop of two tenths of a percent from February. A March 2021 Seek Employment Report from the recruitment agency saw that the country had the highest number of job ads since the site began 23 years ago.
Some of the jobs being advertised will be those that were lost during the pandemic, but the Australian economy is seeing real strength in its jobs figures. The only cloud was the end of the JobKeeper furlough program at the end of March and that is capping any enthusiasm in traders this morning. The JobKeeper program ended at the tail-end of March and any lay-offs could filter into future jobs reports.
Employment is a key indicator for the Australian Reserve Bank and could put pressure on their 2023-4 rate rise plans. The Commonwealth Bank of Australia said that unemployment should drop to 5% by the end of 2021 after the recent jobs performance.
Pound Bulls Hiding in the Shadows
The British Pound has given up its rally in the last week after hedge funds bailed out of sterling over the cautious approach to reopening.
The country has moved to its next phase of reopening with domestic stores opening, however, hopes for foreign travel were dashed by the government and investors felt that the pound had seen its path ahead priced into the pair.
The UK was also seeing surge testing in some boroughs of London with Southwark and Barnet joining Wandsworth and Lambert in testing for outbreaks of a South African virus variant. It comes as travellers coming into Heathrow are facing lengthy delays in getting through customs. The government frown on UK citizens flying abroad and will impose large fines, but somehow they allow people to fly in despite their warnings of importing variants from going on holiday.
There are no more big data releases for the Australian or UK economies and the Aussie dollar could look to build on the recent gains with a chance to move out of the trading range that has dominated since the end of January.
Get in touch to discuss these factors in further detail ahead of your currency exchange for more information about how the AUDGBP exchange rate is likely to be impacted.