Pound Sterling Aussie Dollar GBP AUD Forecast Deteriorates Today

November 12, 2015 - Written by David Woodsmith

STORY LINK Pound Sterling Aussie Dollar GBP AUD Forecast Deteriorates Today

Australian Dollar (AUD) Rallied Across the Board Following Unexpected Drop in Australian Unemployment

The Australian Dollar (currency : AUD) enjoyed strong support in the markets during last night’s Asian session thanks to a far better than anticipated set of domestic jobs figures.

The official statistics revealed that almost four times as many new positions were generated in the Australian economy than had been forecast last month, while a surprise plunge in the overall level of joblessness in the Land Down Under – from September’s 6.2% to a relatively lowly 5.9% last month – added to the positive lustre surrounding the Aussie.

GBP to AUD Conversion Rate has seen a Low of 2.12 Today

The Pound Sterling Australian Dollar exchange rate was riding high at 2.1548 GBP AUD in the lead-up to the release, but by the start of this morning’s eurozone equities session, the pair had plunged and was languishing back down in the 2.1200s.

Paul Dales of ANZ Bank observed earlier that Australian jobs numbers, ‘have given false steers before,’ and went on to explain that he is, ‘wary of placing too much weight on the labour market data.

But the strengthening does chime with the latest improvement in other measures of activity.’ Analysts therefore forecast that the Pound Sterling may incur renewed losses against the Aussie into the medium term.

ECB QE Extension Bets Support AUD Demand

Meanwhile, on the other side of the globe, comments from the European Central Bank’s President also had a marked effect on the relative value of the Australian Dollar, as well as the other high yielding currencies – the New Zealand Dollar, Canadian Dollar (currency : CAD) and South African Rand (currency : ZAR).

Mario Draghi told the European Parliament’s economics committee that, ‘we have always said that our purchases would run beyond end-September 2016 in case we do not see a sustained adjustment in the path of inflation.’

He went on to describe the ECB’s Quantitative Easing programme as ‘powerful and flexible.’ The promise of further ‘easy money’ from the euroland’s central bank is forecast to favour the Commodity Dollars as a bloc moving forward.

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