The Australian Dollar rose across the board Thursday markets responded to the latest Australian employment report, which showed jobs growth continuing apace during April, although it has done little to improve the Aussie interest rate outlook.
The Australian Dollar edged higher during the morning session Wednesday, partially recovering from an overnight slump, as markets responded to a disappointing first-quarter wages report and its implications for the Aussie interest rate outlook.
The Australian Dollar will begin to "appreciate" against the US Dollar and Pound in the second half of the 2018 year, according to the latest set of forecasts from Commerzbank, as the Reserve Bank of Australia shifts it monetary policy stance and begins to raise interest rates.
To us, near-term momentum appears to favour the Australian Dollar, and as such we will be looking for a break of support at 1.7950 for confirmation of further losses in GBP/AUD. But, much will depend on wage data releases out of both Australia and Britain this week.
The Australian Dollar will still rise from the depths of its Spring mire against its US rival later in 2018 but this recovery will be slower and shallower than previously thought, according to the latest forecasts by Commonwealth Bank of Australia, while the Pound-to-Aussie outlook has improved during recent months.
The Australian Dollar rose during the morning session Thursday after data showed a surprise increase in the Australian trade surplus during the month of March and a substantial upgrade to February's number.