The Pound Australian Dollar (GBP AUD) exchange rate rallied on Thursday as markets responded to a range of upbeat data releases relating to the UK’s economy.
Pound Sterling (GBP) Exchange Rates Climb on Mortgage Data and Wage Growth
Despite some early recorded losses the Pound regained its lead over the ‘Aussie’ Dollar as a result of two notable data releases, the first being UK mortgage figures and the second being UK wage growth.
The British Bankers’ Association (BBA) revealed that UK mortgage approvals fell from 40,417 to 39,507 in November, underperforming at first glance in comparison to economists’ forecasts.
It should be noted, however, that the year-on-year value of mortgage lending has risen by 9% in 2017, with an increase in the number of first-time buyers, lower interest rates and an increasingly competitive marketplace helping bolster mortgage activity this year.
In respect to wage growth, recruitment search engine Adzuna revealed that the average wages of their listings online during the November period jumped by some 1.2% compared to the same month, previous year, the first annual increase recorded by the company since 2015.
This comes as good news, with markets continually concerned with the pace of UK wage growth in relation to soaring levels of inflation.
Combined, this news bolstered the GBP AUD exchange rate, though the recent surge in commodity prices kept things relatively limited.
Australian Dollar (AUD) Exchange Rates Bolstered by Surge in Commodities
The Australian Dollar was lifted once again by a surge in commodities on Thursday, with the prices of oil and metals rising during the holiday trade period.
Oil prices continue to benefit from the recent explosion of a pipeline, with efforts by OPEC to curb the global glut also contributing to the rise.
The surge in metals primarily resulted from low global volatility over the holiday period and a currently soft US Dollar.
It should be pointed out, however, that whilst gold and copper saw rises, iron ore did not, with the key Australian export suffering from falling Chinese steel prices over slow winter months.
GBP AUD Forecast: Australian Manufacturing PMI Data Ahead
With thin trading liable to continue until 2018 begins markets are now looking towards next week, with Monday featuring Australia’s AiG performance of manufacturing index figures for December.
Analysts currently predict that domestic factory activity will have slipped during this period, an outcome that could keep GBP AUD in the Pound’s favour.
In other news, Brexit negotiations will commence once again, this time with the transition deal in fresh focus.
Any news of progress will be greeted positively by Sterling investors, whilst any news that the March trade talks will be delayed could leave GBP AUD floundering once again.