Australian Dollar (AUD) Exchange Rate Forecast ? Jobs Data Ahead

September 9, 2016 - Written by Toni Johnson

STORY LINK Australian Dollar (AUD) Exchange Rate Forecast ? Jobs Data Ahead

AUD/GBP Exchange Rate Falls 1%, ‘Aussie’ Down From Best Levels

After rallying earlier in the week in response to upbeat Chinese trade figures and the Reserve Bank of Australia’s (RBA) decision to leave interest rates on hold, the Australian Dollar (AUD) experienced a fairly dramatic tumble before the weekend.
Although the UK’s trade balance figures showed a smaller-than-anticipated reduction in the deficit and domestic construction output remained in decline, the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate fell almost 1% on Friday, dropping from 0.5751 to 0.5687.

Australian Dollar Slides from 3-Week High Vs US Dollar (AUD/USD)

While the Australian Dollar to Pound Sterling exchange rate softened on Friday, the Australian Dollar to US Dollar (AUD/USD) exchange rate also registered a significant loss – plummeting from a three-week high all the way to 0.7555.

The European Central Bank’s (ECB) decision to leave stimulus unaltered was one of the reasons behind the ‘Aussie’s downturn.

According to currency strategist Richard Grace; ‘Global bond yields lifted last night after ECB President Draghi indicated that the ECB didn’t discuss an extension of its asset purchase plan in last night’s ECB meeting, despite expectations of tweaks to the asset purchase program, and there was no need for extra stimulus ‘for the time being’ […] US bond yields took their cue from the lift in Eurozone bond yields as well as stronger than expected US July consumer credit numbers, stronger than expected weekly claims numbers, and a lift in crude oil prices. Expectations of a September Fed interest rate increase lifted slightly to 28%, supporting the USD.’

The Australian Dollar (AUD) was also pressured lower by mixed Chinese inflation data and less-than-impressive domestic home loans numbers.

Home loans were shown to have fallen by -4.2% in July, a significantly larger drop than the -1.5% decline anticipated.

Australian Dollar (AUD) Exchange Rates Forecast to Fluctuate on Jobs Data

So, what news is likely to impact Australian Dollar (AUD) exchange rates next week? Well there are several Australian reports with the potential to impact Australian Dollar to Pound Sterling (AUD/GBP) and Australian Dollar to US Dollar (AUD/USD) exchange rates.

The data likely to have the most influence includes the NAB Business Confidence gauge, Westpac Consumer Confidence Index, the Consumer Inflation Expectation report and domestic employment numbers.

Upbeat data could give the Australian Dollar a lift. However, with China and the US also set to publish some very high-profile reports in the days ahead, the currency market could be in line for some serious volatility.

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