IfLast week’s high: AU$1.8725
Last week’s low: AU$1.8344
Pound Struggles as Brexit Uncertainty Reaches Fever Pitch
The Pound Australian Dollar exchange rate traded in a wide range last week as Brexit drama continued to dominate Sterling sentiment.
The highlights in the ongoing Brexit saga included a jump in Sterling on Wednesday after Theresa May offered to resign as PM if MPs backed her Brexit deal, before immediately falling back as MPs rejected eight possible solutions to Brexit.
Adding to Sterling’s woes was another Brexit vote at the very end of the week, with GBP/AUD striking a one-month low as MPs again rejected May’s withdrawal deal.
Meanwhile driving weakness in the ‘Aussie’ last week was the Reserve Bank of New Zealand’s hint at a possible rate cut this year, with saw AUD fall in tandem with NZD.
However this was offset later in the week by a rise in market risk sentiment, driven by reports of ‘constructive’ US-China trade talks.
AUD Outlook: Dovish RBA to Sink the Australian Dollar?
Looking ahead, AUD investors are likely to be focused on the Reserve Bank of Australia’s (RBA) own interest rate decision this week, with the Australian Dollar potentially tumbling if the bank drops any further hints regarding a potential rate cut this year.
Meanwhile, the Pound is likely to remain highly sensitive to Brexit this week
Outside of Brexit we may see Sterling weaken with the release of the UK’s latest PMI figures, if growth in the UK’s private sector remained subdued in March as forecast.
09:30 UK Manufacturing PMI (Mar)
03:30 AU RBA Rate Decision
09:30 UK Construction PMI (Mar)
10:30 AU Services PMI (Mar)
09:30 UK Wage Growth (Jan)
12:30 AU Trade Balance (Feb)
12:30 AU Retail Sales (Feb)
08:30 UK Services PMI (Mar)
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Foreign Exchange Manager