The GBP/AUD cross rose half a percent during the London session, last seen trading at around 1.8350 and trying to settle above its 200-day moving average.
Australian data disappoint
The Australian employment change improved to -46,300 in October, up from -138,000 previously , but it was much worse than 50,000 new jobs created. The unemployment rate worsened drastically to 5.2%, up from 4.6%. It looks like the COVID restrictions and never-ending lockdowns and surveillance are hurting the economy more than expected.
economists at MUFG Bank said in a note today.
UK data also miss forecasts
The UK GDP for the third quarter declined to 6.6% annualized, down from 23.6% in the second quarter and weaker than the 6.8% forecast by economists. The quarterly GDP change slowed to 1.3% from 5.5% in Q2.
Additionally, **industrial production for September fell to -0.4% from 0.8%, and manufacturing production slowed to just 0.1%, down from 0.5% previously. **
Economists at CIBC Capital Markets noted on Thursday.
US inflation coming in hot
From other news, the US Consumer Price Index (CPI) jumped 6.2% from a year ago, the most since 1990 . The monthly increase was 0.9%. Both were above analysts’ estimates.
The core rate, which excludes volatile food and energy prices, rose 4.6% year-over-year, also the most in more than 30 years. The rise from September was 0.6%. The dollar strengthened notably after the release, sending the dollar index above 95.0 for the first time since July 2020.
However, the AUD/USD pair continued to decline today after weaker-than-expected domestic labor market data. In contrast, the GBP/USD pair traded marginally higher, resulting in a bullish day for the GBP/AUD cross.
Technically speaking, the Pound dropped to fresh yearly lows against the dollar as the GBP/USD pair fell below 1.34. However, as long as it remains below 1.36, the medium-term downtrend remains intact, targeting 1.32.