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Pound Sterling Australian Dollar (GBP/AUD) Exchange Rate Rises Ahead of Further Cross-Party Talks

April 8, 2019 - Written by John Cameron

Pound Australian Dollar (GBP/AUD) Exchange Rate Edged up Ahead of House of Lords Vote

The Pound Sterling Australian Dollar (GBP/AUD) exchange rate edged up on Monday, and the pairing is currently trading at an inter-bank rate of AU$1.8380.

With just five days before the UK is due to leave the European Union, the Labour party have said it hopes for further cross-party discussions.

While communication between the Conservatives and Labour is due to continue this week, very little detail has emerged from the talks.

Rebecca Long-Bailey, a member of Labour’s negotiating team described the mood as ‘positive and hopeful’ on Sunday, and indicated that further talks were likely to take place early this week.

Meanwhile on Sunday, Prime Minister Theresa May tweeted a video message outlining her reasons for negotiating with the opposition.

In the laid-back message, the Prime Minister said:

‘We absolutely must leave the European Union […] that means we need to get a deal over the line and that’s why we’ve been looking for new ways – a new approach – to find an agreement in Parliament.

‘People didn’t vote on party lines when it came to the Brexit referendum. And I think members of the public want to see their politicians working together more often.’

Australian Dollar (AUD) Falls as Aussie Job Advertisements Slide

Data released by ANZ Bank on Monday showed that Australian job advertisements fell steeply once again in March.

Advertisements fell by a further -1.7% in March following a slide of -0.8 in February.

The annual rate contracted by 6%, the steepest decline in over five years which likely weighed on the Australian Dollar (AUD).

In the past, a fall in advertising levels usually coincided with a rise in unemployment, however Australia’s unemployment rate currently stands at 4.9%, the lowest level in eight years.

Last Week: Risk-Sensitive Australian Dollar (AUD) Buoyed on US-China Trade Optimism

US-China trade discussions will continue this week via video link in order for officials to ‘resolve outstanding issues.’

Last week, face-to-face discussions in Washington were described as successful, with US President Trump stating that a trade deal would be announced within four weeks.

This likely buoyed the ‘Aussie’ at the end of last week, although it could do little at the start of this week following disappointing Australian data.

However, US officials have said that there was still ‘significant work’ to be done in trade talks with Beijing.

Commenting on the progress made, White House Advisor, Larry Kudlow said:

‘We are making headway in a lot of areas. That includes enforcement, that includes IP [intellectual property] theft, that includes forced technology transfers, ownership, cyberspace, commodities and all the rest of it.

‘Those are of course in the middle of the negotiations that are ongoing but we’ve come further and farther than ever before.’

Pound Australian Dollar Outlook: GBP/AUD to Rise on Disappointing Aussie Home Loans Data?

Looking ahead to tomorrow, it is likely the Australian Dollar (AUD) will continue to fall against the Pound (GBP) following the release of February’s home loans data.

If Australian home loans contracts once again in February it is likely it will dampen sentiment in the ‘Aussie’.

The British Retail Consortium (BRC) will release March’s like-for-like retail sales on Tuesday evening, which could cause Sterling to slide against AUD.

If sales contract for the second consecutive month, it could cause the Pound Australian Dollar (GBP/AUD) exchange rate to fall.

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