The GBPAUD exchange rate has high-level economic data ahead this week.
GBPAUD – Daily Chart
GBPAUD has found resistance at 2.0300, which provides a potential short play to 1.9750.
The British pound pairs are in focus ahead of the country’s imminent government budget. That is expected to bring tax increases, or similar punitive measures against consumers and businesses, to plug a hole of up to $30bn.
The budget is set for November 26, and the UK got more bad news with a jump in the unemployment rate to 5%. Markets had been expecting 4.9% but the recent trends are heavy, and AI is eating into job markets across the world. The UK’s Chancellor had taken an unprecedented measure of a pre-budget speech to announce the coming changes.
But a former Treasury minister said tax rises may not be enough to ease the pressure on the pound.
Jim O’Neill said, if raising income tax was “the only big thing that’s coming, it won’t be long before the markets start to worry again that the UK is not getting any growth of substance … and what are they [ministers] going to do next?”
The GBP/AUD will be in focus on Thursday with a 7:30 am HKT release of Australian unemployment data. Analysts expect the Aussie jobless rate to fall to 4.4% from 4.5%.
This is followed by the latest UK GDP figures, scheduled for release at 2 pm HKT. A quarterly dip to 0.2% to 0.3% growth is expected.
