Pound Australian Dollar (GBP/AUD) Exchange Rate Wavers amid Mixed Trade Data
The Pound Australian Dollar (GBP/AUD) exchange rate is trading sideways today, following a dramatic spike and then fall in the overnight trading session.
At the time of writing the GBP/AUD exchange rate is trading at AU$1.9154, dipping from its overnight high of AU$1.9229.
Australian Dollar (AUD) Fluctuates following Trade Reports
The Australian Dollar (AUD) was volatile last night as the currency shot up before slumping back down again following mixed data releases from both Australia and China. The Australian currency is now left trading in a narrow range.
Australia’s balance of trade was released overnight, reporting that the trade surplus rose to $7.13bn in October, possibly lending the currency some support. However, the data missed forecasts by almost $0.4bn, potentially capping any AUD gains.
Chinese data also printed mixed, with Chinese imports reporting an unexpected fall of 0.6% for November, missing forecasts of a 3.3% rise. With China being Australia’s largest trading partner, this fall in Chinese imports could have impacted the ‘Aussie’, adding to the currency’s mixed movement overnight.
Pound (GBP) Muted amid Lack of Data
The Pound (GBP) is subdued today amid a lack of any fresh UK data set for release.
Following yesterday’s speech by Bank of England (BoE) Governor Andrew Bailey, the Pound is struggling today, trading lower against its peers. Bailey’s speech struck a cautious tone, implying that interest rates are ‘likely’ to stay at current levels moving forward.
‘Rates are likely to need to remain at these levels for an extended period to bring inflation back to target on a sustained basis’, explained Bailey as part of his address.
Markets read this as a slight climbdown from his more hawkish stance in recent weeks. Bailey had previously implied that rates would almost certainly stay higher for longer.
Looking at today’s session, with a lack of any new British economic data set for release, Sterling seems to be left vulnerable to yesterday’s cautious comments.
GBP/AUD Exchange Rate Forecast: Waning Risk Appetite to Dent AUD?
Looking ahead, the Pound Australian Dollar exchange rate could be impacted by the market mood, as the US non-farm payrolls data is set to be released tomorrow.
This data could have a big impact on market sentiment moving forward, as it may affect Federal Reserve interest rate cut bets. If it shows a rise in US job creation, as expected, then the market mood could sour. This could lend GBP/AUD some support.
Turning to the Pound, a lack of any new UK data moving forward could leave Sterling trading without a clear direction. The next notable data release is on Tuesday, with the UK’s average earnings set to be released. If the data shows easing growth earnings, this could spark talk of BoE rate cut bets and thereby weigh heavily on GBP exchange rates.