The Pound to Australian Dollar (GBP/AUD) exchange rate pushed higher on Thursday after weak Australian trade data dented the ‘Aussie’.
Pound to Australian Dollar (GBP/AUD): 2.00554 (+0.17%)
Pound to Dollar (GBP/USD): 1.34364 (-0.17%)
Australian Dollar to Dollar (AUD/USD): 0.66997 (-0.33%)
DAILY RECAP:
The Australian Dollar (AUD) weakened on Thursday following the release of downbeat Australian trade figures.
The latest balance of trade report showed Australia’s surplus narrowed sharply in November, slipping from AU$4.35bn to AU$2.93bn. The deterioration was driven by a 2.9% slump in exports, highlighting the vulnerability of Australia’s export-dependent economy.
The disappointing data weighed on the ‘Aussie’, particularly as trade performance remains a key driver of Australian growth and currency sentiment.
AUD was further undermined by a cautious market mood, with geopolitical uncertainty weighing on demand for risk-sensitive currencies. Concerns surrounding US interventionism in South America and Greenland, alongside ongoing EU-Russia tensions, kept investor risk appetite restrained.
Meanwhile, the Pound (GBP) struggled to build on its gains amid a lack of UK economic data.
With no major domestic releases, GBP investors appeared to take note of a new Office for National Statistics survey which found that 4% of businesses using AI have already cut jobs, while 5% of firms planning to adopt AI expect workforce reductions.
The findings reinforced expectations that UK unemployment could continue to edge higher, limiting Sterling’s upside.
Near-Term GBP/AUD Forecast: Market Mood to Drive Direction?
Looking ahead to Friday, the absence of UK and Australian economic data leaves the Pound Australian Dollar exchange rate vulnerable to wider market trends.
Risk appetite is likely to be the key driver, with ongoing geopolitical concerns potentially weighing on the risk-sensitive ‘Aussie’.
Further escalation in South America, uncertainty over Greenland, or renewed tensions surrounding the Russia-Ukraine conflict could trigger risk aversion and lift GBP/AUD.
Meanwhile, the latest US non-farm payrolls report could also influence sentiment. Evidence of a softer US labour market may reinforce expectations of Federal Reserve rate cuts, potentially boosting global risk appetite and supporting AUD.
Conversely, stronger-than-expected jobs data could see the Australian Dollar stumble.
