Pound Australian Dollar Exchange Rate (GBP AUD) Drops Following Strong Australian Employment Data

Published: Thursday, 14 March 2013 10:00 BST - Written by John Cameron

STORY LINK Pound Australian Dollar Exchange Rate (GBP AUD) Drops Following Strong Australian Employment Data

The major market-moving risk events during the overnight session came from the Antipodes in the form of the latest Reserve Bank of New Zealand (RBNZ) policy decision and the publication of last month’s Australian unemployment data.

As per analysts’ expectations, the RBNZ opted to maintain New Zealand’s domestic interest rate at 2.50%. However, as has so often proved the case with recent central bank announcements, it was the RBNZ’s accompanying statement which caused investors to adjust their positions. In the last few months, New Zealand’s central bank has suggested that due to relatively positive domestic economic indicators, a hike in its key lending rate might be on the cards. However, this policy stance was well and truly ditched this month when the Bank’s accompanying statement ruled out any increase in rates for the remainder of this year, at least. The news caused the ‘Kiwi’ to give up ground against the other major global currencies, sending the Pound to New Zealand Dollar exchange rate up as high as 1.8309 in early European trading today.

Meanwhile, there was far more positive news for the Australian Dollar overnight, when the latest edition of the country’s labour market data showed that 71,500 jobs had been added to the domestic economy in February. The increase in employment, which was represented the largest hike in employment since the year 2000, pushed the Pound Australian Dollar exchange rate down to 1.4392 during last night’s Asian session. With little in the way of evidence to show that Australia’s commodity-fuelled boom of recent

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TAGS: Australian Dollar Forecasts Daily Currency Updates New Zea Forecasts