GBP to AUD Exchange Rate firmer on weaker than forecast building approvals data

Pound to Australian Dollar exchange rate graph

The Australian Dollar (AUD) softened against the Pound (GBP) on Wednesday but remains close to multi-month highs against the US Dollar.

The currency softened as traders continued to take profits from its recent high levels and as they stay cautious ahead of the release of US jobs data. A report which showed that approvals to build houses and apartments fell in February, a pause after the previous month’s strong showing.

According to the Australian Bureau of Statistics, approvals to build new property declined by 5% in February, a sharp decline from the 6.9% recorded in January. Economists had been forecasting a drop of 2.5%. On a yearly basis however approvals were up by 23.2%.

Against the ‘Greenback’ the ‘Aussie’ remains above the 92 cents level. Yesterday saw the currency climb above 93 cents. The currency retreated slightly due to the profit taking and yesterday’s comments by the Reserve Bank of Australia that the currency’s recent run of gains won’t help the nation’s economy.

“When it pushed past 93 US cents post-RBA it looked like there was an opportunity to book some profits and push the ‘Aussie’ back. But the ‘Aussie’ hasn’t moved below 92 cents. The currency is still at the upper end of its recent range,” said a forex dealer.

The Aussie is forecast to make little movement until the end of the week when the latest US nonfarm payrolls data is published. The data will be the first jobs since the deadly storms at the beginning of the year, and therefore will give a clearer picture on the state of the American economy.