Pound Australian Dollar (GBP/AUD) Fluctuates amid a Quiet Market
The Pound Australian Dollar (GBP/AUD) exchange rate is trading narrowly this morning as investors remain on the sidelines ahead of key US inflation data.
At time of writing, the GBP/AUD exchange rate is around $1.7608, relatively unchanged from this morning’s opening levels.
Australian Dollar (AUD) Quiet ahead of US Inflation Data
Meanwhile, the Australian Dollar (AUD) remains relatively listless as investors brace for US inflation data. Domestically, the ‘Aussie’ couldn’t draw much strength from mixed trade data.
Overnight, Australia’s trade surplus increased to $13.2bn, beating expectations of $10.5bn. Recording the largest trade surplus since June, exports fell far less than imports. With sky-high inflation persisting, and compounded by soaring interest rates, both exports and imports.
AUD investors will be eagerly awaiting US inflation news and hoping a softening US CPI could finally slow the Federal Reserve’s rate hike cycle.
Pound (GBP) Modestly Supported by Christmas Sales Boost
The Pound (GBP) is struggling to find a clear direction this morning amid a lack of major economic data. ‘Retail Super Thursday’ could be providing some tepid support for Sterling, as big-name retailers announce profits over the festive period.
Tesco and Marks & Spencer announced strong Christmas performance over the period. Tesco becomes the only grocer to increase its UK market share compared to pre-pandemic levels. Marks & Spencer also announced a ‘strong Christmas trading performance’ as its food division recorded its highest ever market share over the festive period.
Meanwhile, keeping a firm lid on any potential gains is the confirmation of more than 100,000 civil servants to strike on 1 February. The Public and Commercial Services (PCS) union announced a one-day strike over work conditions and pay disputes. Spanning 124 government departments, and more expected to follow, the strike will be the largest civil servant strike in a generation.
Pound Australian Dollar Exchange Rate Forecast: US Inflation to Lift the Aussie?
Looking ahead, the Pound Australian Dollar exchange rate could see further movement with the release of US inflation data. With the market hopeful of a drop in CPI inflation, global market sentiment could be lifted, and the ‘Aussie’ with it.
Meanwhile, data remains thin on the ground for Sterling until tomorrow. GDP growth data is expected to show a weakening economy once more. If data prints to forecast, the Pound could slide.