The Australian Dollar got a boost against its US counterpart after the speech by Philip Lowe, the governor of the Reserve Bank of Australia. Lowe said that he was confident that the current environment of low wage growth in the Australian labor market would reverse course as a factor of supply and demand. Lowe also said that the current labor market in Australia, with an increase in new jobs and a fall in the unemployment rate, were also strong signs of impending improvement. Nonetheless, the RBA has said that it would maintain its current policy, given relative stagnation in global inflation. GDP figures for Australia will be released tomorrow and are expected to show a slight rise in the 2nd quarter to 1.8% (year-over-year) and 0.8% (quarter-over-quarter).
As reported at 11:29 am (BST) in London, the AUD/USD was trading at $0.7977, a gain of 0.44%; the pair had earlier hit a peak of $0.798 while the session low stands at $0.79400. The GBP/AUD is trading lower at A$1.6243, down 0.16%.
GBP Steady Despite Disappointing Data
Versus the US Dollar, the Pound Sterling held above the $1.29 level after disappointing services data suggested that growth in the UK is weakening at an unforeseen rate. The July services sector PMI showed a reading of 53.2 against expectations of a decline to 53.5; for reference, any number above 50 is viewed as expansionary. For investors, that suggested that the Bank of England’s current loose policy is likely to remain in place for the foreseeable future. The BOE’s next policy meeting will be held on Thursday, September 13th, just before a slew of economic data is to be released.