AUD GBP Higher with Employment and GDP Data Ahead

GBP AUD Lower as Australia Delays Border Reopening

The AUD GBP exchange rate was higher by 0.46% on Wednesday as traders anticipated some positive data for the Australian dollar. Australia releases the latest jobs market report with job ads at a 13-yr high expected to boost the labor market. The UK also has GDP numbers and that could show a continued slowdown.

The AUD GBP exchange rate was trading at 0.5460 ahead of the Westpac consumer data.

British economic growth to decide the pound’s fortunes

Today sees economic data for the UK economy with quarterly GDP and trade balance figures.

Growth is expected to slow to 1.5% in the recent quarter, down from 2.9% and the year-on-year number is expected to slow to 5.4% from 6.9%.

The economy has struggled with energy prices and inflation, but the latest figures will not include that. The Bank of England also downgraded its forecasts by 1% for the year.

Elsewhere the pound could be weighed by the European Union talks. European Union governments agreed on the need for “robust” action if London follows through on its threat to escalate a post-Brexit trade dispute.

“The EU is preparing for the triggering of Article 16 by the UK. There is consensus among EU member states that such an arbitrary and unjustified move by the UK will be met with a clear European response,” one EU diplomat said.

Australian dollar looks to jobs market for a boost

The Aussie dollar has an employment update and that could give the currency a lift.

Expectations are for a reading of 50k jobs added but the unemployment is still expected to increase to 4.8%. The lockdowns have caused damage to the jobs market but with last month seeing a loss of 138k jobs.

But the jobs market is seeing advertising at a 13-yr high and Treasurer Josh Frydenberg also pointed to figures that showed the nation avoided a large number of business failures during the pandemic. According to tax office and Treasury data, there were 40% less administrations this year than in the same period in the years before coronavirus.

“It’s another proof point that Australia’s economic recovery is on track,” Mr Frydenberg told the Nine Network.

But shadow treasurer Jim Chalmers said the Australian economy is recovering despite the Morrison government, not because of it.

“We want the Australian economy to recover strongly but it’s not a recovery if ordinary working families miss out,” Dr Chalmers said.

Despite some strain on household budgets, retailers are expecting a A$5 billion shopping frenzy during the Black Friday and Cyber Monday weekend.

The four-day period, from November 26-29, has become increasingly popular in Australia.

Australian Retailers Association CEO Paul Zahra said November was now Australia’s biggest shopping month of the year.

“For the past two years, November has beaten December as the biggest month for Australian retail sales throughout the year. Black Friday and Cyber Monday can be credited with this trend as people snap up some bargains and shop early for Christmas.”

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