Pound Australian dollar (GBP/AUD) exchange rate subdued following Australian data releases
The pound Australian dollar (GBP/AUD) exchange rate is trading sideways this morning after Australia release a number of macroeconomic data releases overnight.
At the time of writing the GBP/AUD exchange rate is trading at $1.9150, virtually unchanged from this morning’s opening rate.
Australian dollar (AUD) rangebound following juxtaposing data
The Australian dollar (AUD) is trapped in a narrow range this morning following the release of Australia’s latest Westpac consumer confidence change for April and March’s NAB business confidence index.
The latest consumer confidence change fell more than expected and printed at -2.4%, well below a more modest -0.5% estimate.
This marked a second consecutive monthly fall in household morale and came in at the lowest level in five months, denting AUD sentiment in the process.
However, domestic business confidence showed a marginal increase edging higher from a previous reading of 0 up to 1, offering AUD exchange rates some modest support.
Despite the contrasting data reading and a mixed market mood, the ‘Aussie’ is managing to stay afloat against the majority if its counterparts through this morning’s European session.
Pound (GBP) bolstered by retail hopes
The pound (GBP) is managing to hold steady against the majority of its peers this morning as it’s underpinned by the latest retail sales monitor from the British Retail Consortium (BRC).
The latest year-on-year figure soared past forecasts, coming in at 3.2% rather than a more modest prediction of 1.8%, and more than three times higher than a previous reading of 1%.
The data confirmed the highest monthly figure in over two years, and was largely put down to an early Easter weekend of consumer spending.
Linda Ellett, KPMG UK’s Head of Consumer Markets, Leisure and Retail, explained:
‘High street sales growth was driven by food and drink, health and beauty and keen gardeners who headed outside to enjoy the first days of spring. As April signals big increases in the sector’s cost base – retailers will be hoping that the bounceback of March sales is more than just an Easter blip.’
Driven by hopes that the UK retail sector may be turning a corner, Sterling managed to stay above ground through this morning’s session.
GBP/AUD exchange rate forecast: minimal data to leave GBP and AUD exposed to market shifts?
Looking ahead, the primary driver of movement for the pound Australian dollar exchange rate for the majority of this week is likely to be any shifts in risk appetite.
A key event will be the US consumer price index on Wednesday, when an expected uptick in American inflation could sour the market mood and therefore dent the Australian dollar.The one data release of note this week that may influence GBP exchange rates is the UK’s latest GDP print for February, expected on Friday.
The data is forecast to report a 0.1% increase following a previous reading of 0.2%, which could see GBP exchange rates struggle to catch bids at the end of the week should the data confirm that growth slowed to a crawl in February.