GBP/AUD Forecast: Pound Australian Dollar Exchange Rate Mixed as Australian Unemployment Falls

June 17, 2021 - Written by John Cameron

STORY LINK GBP/AUD Forecast: Pound Australian Dollar Exchange Rate Mixed as Australian Unemployment Falls

The Pound to Australian Dollar (GBP/AUD) exchange rate has firmed this morning after the latest Federal Reserve interest rate decision left markets jittery.

The GBP/AUD pairing are currently trading at around AU$1.8367, as the Australian Dollar found support following the latest employment change figures from Australia.

Pound (GBP) Rangebound as Travel to Amber List Countries May Be Given Go Ahead

The Pound has been rangebound this morning as the latest news from the government indicates that fully vaccinated Brit’s will be able to travel to Amber list countries.

As reported by The Telegraph:

‘The change would effectively turn amber countries green for the vaccinated, opening up the possibility of quarantine-free travel to most major holiday destinations in Europe and the US.’

‘It is still at an early stage and it is not clear whether it will be worked out in time for the end of the month. There is an awful lot to do. The devil is in the detail.’

Whilst the Pound has been trading lower since the announcement that lockdown restrictions will be enforced for a further four weeks, the news that travel abroad could be introduced sooner rather than later has warmed investors.

Australian Dollar (AUD) Steady on Employment Change Figures

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The Australian Dollar (AUD) is steady this morning after the latest employment change figures from Australia were above market expectations.

The unemployment rate in Australia fell to 5.1% during May, down from 5.5% as the Australian economy added 115,000 jobs.

Ben Udy, an economist at Capital Economics commented on the direction the Reserve Bank of Australia could take at its next policy meeting:

‘We expect the RBA to announce a flexible asset purchase programme at its next meeting. But if the labour market recovery holds up as we expect, the Bank may be making use of that flexibility by tapering asset purchases sooner than November as we had anticipated.’

Limiting the Australian Dollar today however is the Federal Reserve’s latest interest rate decision and proposed interest hikes which have left markets cautious.

GBP/AUD Exchange Rate Outlook: UK Retail Sales in Focus

Tomorrow will see the release of the UK’s latest retail sales figures for May which are forecast to have increased 29.7%, if the data meets forecast the Pound could find a boost heading into the weekend.

In absence of any notable data for the Australian Dollar will instead see investors keep an eye on the global market mood, a further resurgence in the US Dollar could cause AUD to suffer.

The GBP/AUD exchange rate will continue to be driven by any further global coronavirus developments, as cases continue to increase the exchange rate could stumble.

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TAGS: Pound Australian Dollar Forecasts