GBP/AUD to Test Key Support Near 1.8500 Amid Forecast of Slowing Inflation in the UK
November 11, 2019
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United Kingdom – Consumer Price Index On Wednesday, at GMT 9:30 a.m., the UK’s Office…
GBP/AUD Likely to Remain Volatile Amid COVID-19 Induced Mayhem in Global Markets
GBP/AUD Forecast & Technical Analysis
United Kingdom – Unemployment Rate
On Tuesday, at GMT 9:30 a.m., the UK’s Office for National Statistics will release the national unemployment rate. It measures the percentage of total workforce which remained unemployed over the past month.
Forex Brokers consider the unemployment rate to be one of the most important fundamental indicators of the UK’s economy. It is because one of the main goals of the Bank of England is to keep unemployment as low as possible. This is a lagging indicator. But, analyzing this data can help Forex traders predict future interest rates. Also, it can help forecast the inflation situation in the country.
Last month, the unemployment rate in the United Kingdom came out at 3.8%. This month, analysts are expecting it to remain unchanged at 3.8%.
Australia – Unemployment Rate
On Thursday, at GMT 12:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate. It measures the percentage of total workforce which remained unemployed over the past month.
Forex investors consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy. It is because one of the main goals of the Reserve Bank of Australia is to keep unemployment as low as possible. This is a lagging indicator. But, analyzing this data can help Forex traders predict future interest rates. Also, it can help forecast the inflation situation in the country.
Last month, the unemployment rate in Australia came out at 5.3%. This month, analysts are expecting it to remain unchanged at 5.3%.
GBP/AUD Forecast
The GBP/AUD remained bullish since the end of July 2019. Last week, it broke above the resistance level around 1.9750. Last week, volatility went up due to the Coronavirus induced market crash in the US. However, it appears to be stabilizing for now. Meanwhile, the GBP/AUD seems to be forming a strong resistance near the 2.0180 level.
The Australian unemployment rate will likely stay stable at 5.3%. On the other hand, analysts are expecting the UK’s unemployment rate to remain unchanged at 3.8% as well. Hence, the technical factors will likely determine the momentum in the market this week. Given the underlying bias, if the GBP/AUD closes above the resistance near 2.0180, it would likely attract additional bullish momentum in the market.
Hence, forex traders should look out for trading opportunities above this major resistance level around 2.0180.
Market Analyst / Trading Consultant . Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes about various tech and financial topics. You can reach him at contact@asifimtiaz.com
