GBP/AUD is in free fall on Monday morning. Currently, one British pound buys 1.9463 Australian dollars, down 1.51% as of 7:15 AM UTC.
AUD Boosted by Rise in Jobs Ads, Housing Prices
While the global coronavirus epidemic is affecting both the Australian and British economies, the Aussie is stronger today amid a series of positive economic data.
To begin with, Australian job ads increased for a second month last month, after a sharp drop in December. Australia and New Zealand Banking Group (ANZ) said that the total number of job advertisements rose to 0.7% in February, after a 3.8% increase in the previous month. However, the indicator is still down year-on-year.
ANZ senior economist Catherine Birch commented:
“This has been a surprise to the positive side. However, the past two months of gains weren’t enough to regain levels seen prior to the sharp loss in December and any underlying momentum may stall in the near-term.”
Demand for jobs is dragged down by the impact of the coronavirus on tourism, supply chains, trade, and the broader economy, Birch noted.
The Reserve Bank of Australia (RBA) is closely watching the ANZ’s vacancies measures. More economists believe that the central bank might cut the interest rate to a record 0.5% in an effort to stimulate the economy amid the coronavirus impact.
Elsewhere, Australia’s housing market saw increasing prices in February, suggesting solid consumer confidence. Property consultant CoreLogic said earlier today that home prices had increased by 1.1% last month, from a 0.9% rise in January.
The 12 months growth in February rose to 6.1%, which confirms a revival after declines seen early in 2019.
The bull market was especially visible in Sydney, Melbourne, Brisbane, Adelaide, Hobart, and Canberra, most of which saw all-time highs in terms of house prices.
CoreLogic head of research Tim Lawless explained:
“At the current run rate of growth, the national index is likely to reach a new nominal high over the next two months.”
Yesterday, data from the Australian Industry Group (AIG) showed that the performance of manufacturing index (PMI) had declined 1.1 points last month, to 44.3, which is the lowest level in almost five years.
Later today, the UK will also publish its manufacturing activity data.
Besides a strengthening Aussie, the pound is under pressure amid tensions between the UK and the European Union (EU), as the trade talks start later today in Brussels.
