AUD to GBP Rebounds, But Pound Positive Bias Intact

Summary:

AUD to GBP rebound today after mixed unemployment data from the UK. June ILO unemployment rate improved to 3.9% beating analyst's expectations of 4.2%.

AUD to GBP rebound today after mixed unemployment data from the UK. June ILO unemployment rate improved to 3.9% beating analyst’s expectations of 4.2%. The unemployment reading for May was at 3.9%. The employment change for June dropped at -220k below the estimates of -300k. The previous month reading was at -125k.

The Office of National Statistics noted that employment is weakening despite the increase in economic activity. The Claimant Count Rate fell to -2.2% in July from the previous 7.3%. Claimant Count Change registered in at 94.4K beating the estimates of 10K. The June average weekly earnings, excluding bonus, came in at -0.2% below the expectations of -0.1%.

From Australia, the country’s payroll jobs remained at 4.5%. The Payroll jobs in Victoria fell 1.5% in July after the introduction of new coronavirus restrictions in the state. The Australia Bank’s Business Confidence came down to -14 in July from previous 1. On the other hand, the National Business Conditions improved up to 0 in July from previous -7.

AUD to GBP Technical Analysis

AUD to GBP is 0.17% higher at 0.5479, as the correction that started on July 22 continues despite today’s rebound. British pound boosted the last weeks from Bank of England view on the economic recovery of the country. BoE kept interest rates unchanged and also kept the bond-buying program at current levels. The short term bearish momentum is intact below the 50-day moving average.

Initial resistance for the pair stands at 0.5490 the daily high. Bulls need to move above the 50-day moving average to regain control of the short term. More selling pressure stands at 0.5562 the top from July 28.

On the other hand, immediate support for AUDGBP is at 0.5460 today’s low. Suppose the pair breaks below, the next support stands at 0.5434 the low from August 3. What can cancel the bullish momentum is a break below 0.5351 the 100-day moving average.