GBP and AUD Update

[Anthony from Moneycorp 7]

The Australian Dollar (AUD) was turbo - charged overnight on Tuesday with the currency racing higher against the Pound (GBP) and the majority of its other peers following the release of some stronger - than - expected economic data from China.

According to China’s National Bureau of Statistic, Chinese GDP held at 6.4% through the first quarter of 2019.

While this left growth at a decade low it beat expectations that growth would have slowed to 6.3% prompting suggestions that China’s recent slowdown may have bottomed out.

This was also accompanied by some impressive Chinese industrial statistics, with year-on-year growth in industrial production reported to have rocketed up from 5.3% to 8.5%, blowing past forecasts of a modest rise to 5.9%.

The accompanying industrial data may have been even more supportive of the rise in risk sentiment according to some analysts.

Looking ahead, the Pound Australian Dollar (GBP/AUD) exchange rate may come under additional pressure on Thursday as the UK publishes its latest retail sales figures.

Sterling looks likely to stumble following the data as economists forecast that sales growth will have slumped in March, falling from 0.4% to -0.3% as consumers limited their purchases amid heighted Brexit uncertainty.

In the meantime the release of Australia’s employment figures overnight could elicit some weakness in the Australian Dollar.