The pound and the Australian dollar are rising

We got to know the minutes of the May meeting Reserve Bank of Australia and data from the British labor market. Both publications seem to support currency quotes: both the Australian dollar and the British pound are gaining in value

Let us recall that in May Australia there was an interest rate hike by 25 basis points, to the level of 0,35 percent. This move exceeded the market consensus assuming a hike by 15 basis points. It was also the first increase in nearly 12 years, i.e. from November 2010.

The currency gained 0,5 percent.

The Reserve Bank of Australia, however, announces further monetary policy tightening, trying to counteract it rising inflationwhich in 2022 may amount to approx. 6%, and core inflation to approx. 4,75%, after which a decrease to approx. 2024% is expected by mid-3.

According to members of the Bank, Australian households and businesses are in good shape, business investment is recovering, and there is a lot of construction work in the pipeline. The Australian GDP forecast is an increase of 4,25 percent. in 2022 and by 2 percent. in 2023

The RBA's stance on further interest rate hikes may affect the performance of the Australian dollar (AUD). Tuesday morning AUD / USD rate returned above the level of 0,7, increasing by approx. 0,5 percent.

UK with better employment figures

The number of people working in Great Britain increased by 83 thousand. on a quarterly basis, significantly above market expectations assuming an increase by 5 thousand. Thus, the unemployment rate in Great Britain dropped to 2022% in the first quarter of 3,7, which is the lowest result since 1974. The consensus assumed a reading of 3,8%. For the first time since the start of registration, the number of unemployed (1,257 million) is lower than the number of job vacancies, which reached a new record of 1,295 million.

The real increase in regular wages in Great Britain was by 2%. lower than a year ago, which is the largest decrease since Q2013 XNUMX. High inflationary pressure seems to be detrimental to the purchasing power of consumers.

GBP / USD exchange rate it is turning back from potential support at 1,2100 and is currently in the area of ​​1,2400. A good situation in the labor market can also cause that Bank of England may be bolder in approaching subsequent interest rate hikes.