GBP AUD Mixed as Traders Weigh Up Recent Data

GBP AUD Mixed as Traders Weigh Up Recent Data

The GBP AUD exchange rate was slightly higher by 0.05% on Thursday but traders are hesitant about the next path for the pair. Australian retail sales were set to show a rise after a boost to consumer data this week ahead of Black Friday sales.

The GBP AUD exchange rate was trading at 1.8520 ahead of the retailer data.

Australian economy ‘on the road to recovery,’ says treasurer

Australian treasurer Josh Frydenberg has said that Australia is on the road to recovery from the coronavirus pandemic after ABS payroll jobs data today highlighted a rise in the second half of October.

“Today in the ABS job data, the payroll jobs data for the last fortnight, we have seen an increase in jobs across the country,” Mr Frydenberg said.

“Jobs are now 3.9 per cent higher than going into this pandemic, and jobs are now higher in every state and territory.

“Only this side (Liberal party) will deliver lower taxes for all Australians.”

His latest comments come after he talked up the economy on Tuesday, saying:

“Last year we were facing economic Armageddon – there was some forecasts that unemployment could reach as high as 15 per cent”.

“Today, unemployment is actually lower than when we came to government.”

He added that small business tax rates have come down to their “lowest level in 50 years,” and in the last three months, there has been tax relief of more than $10 billion,” he added.

Traders are awaiting the latest retail sales data for the Australian economy and better consumer confidence numbers this week could hint at a positive number for retailers ahead of the holiday season.

Small business report sees positives for UK growth

A reading on small businesses has boosted hopes for UK growth with a rebound in London and higher wages across the country.

Xero’s small business index saw a 19-month high last month at 95 points, underlining the recovery for small businesses.

Glen Foster, director of small business and accounting partners at Xero, said: “It’s encouraging to see positive signs of small recovery, with wages and jobs moving in the right direction and beginning to reflect the resurgence of the economy.”

London’s small businesses added staff at levels of 2.5%, which was as high as any region. Wages were also see climbing by 2.7%.

The rise in wages is positive but inflation in the country is currently higher at 4.2% and the Bank of England has yet to act to rein in price pressures. Workers will hope that their comments about temporary inflation are right, or wage increases will be eaten up by inflation.

Friday has no economic data scheduled for the UK and Australian economies and the GBP v AUD could consolidate into the weekend. The pound sterling has bounced since early-November but hesitancy from the central bank is weighing on the price rally and could retreat if the Australian economy improves.

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