Pound To Australian Dollar Price Forecast: Aussie Jobs Data Leaves AUD Rangebound

Pound-Australian Dollar could remain sensitive to risk appetite, with a souring market mood likely to weigh on the Aussie.

The Pound Australian Dollar (GBP/AUD) exchange rate fluctuated on Thursday as markets reacted to Australia’s latest jobs report.

At the time of writing, GBP/AUD was trading at AU$1.8813, virtually unchanged on the day.

DAILY RECAP:

The Australian Dollar (AUD) initially fell during Thursday’s Asian trading session as investors digested Australia’s latest jobs report.

New data showed that Australian unemployment rose in August, unexpectedly climbing from 4.5% to 4.6%. Meanwhile, full-time employment fell by 6,300.

However, the rise in unemployment was largely due to more people entering the workforce, with the participation rate jumping from 66.9% to 67.1%. Additionally, part-time employment beat forecasts, increasing by 39,500.

These positive elements of the release helped the Australian Dollar limit its losses and regain some ground as trade went on.

Meanwhile, the Pound (GBP) struggled to hold its overnight gains against the ‘Aussie’ amid fresh bond market turmoil and some softer UK data.

Gilt yields spiked on Thursday, nearing the 19-year highs touched earlier in the month, amid rising oil prices and growing bets on further Federal Reserve interest rate hikes. This in turn raised concerns about the UK’s fiscal position ahead of the Autumn Budget.

Additionally, weaker-than-forecast data from the Confederation of British Industry (CBI) also put some pressure on GBP, although its impact was limited.

Near-Term GBP/AUD Forecast: Risk Appetite in Focus

Looking ahead, Friday brings a lack of UK and Australian economic data, potentially leaving the GBP/AUD exchange rate to trade on market risk appetite.

Any shifts in risk sentiment could drive volatility, while a prevailing risk-off mood could weigh on the ‘Aussie’.

Markets will be keeping an eye on events in the Middle East, amid tentative hopes for a US-Iran peace deal. Federal Reserve interest rate expectations are also likely to impact market sentiment, with fears of higher borrowing costs potentially dampening risk appetite.

Our currency coverage draws on live market data, official economic releases and published bank research.