Yesterday’s high: AU$1.7322
Yesterday’s low: AU$1.7105
Late-Week Pound Rally Triggered by ‘Soft Brexit’ Hopes
The GBP/AUD exchange rate fell for most of last week, with the pairing dropping by a further ½ cent after Australia’s retail sales figures smashed forecasts.
However, GBP/AUD staged an impressive rebound on Friday, jumping by 1%.
The Pound’s gains against the Australian Dollar were encouraged by reports that Spanish and Dutch finance ministers were planning to support a ‘soft Brexit’.
Ex-UKIP leader Nigel Farage also suggested that a second Brexit referendum could be held.
AUD Outlook: GBP/AUD Volatility Ahead On UK Inflation Stats
The Pound could turn turbulent against the Australian Dollar on 16th January when high-impact UK inflation data is published.
December’s readings are tipped to show a slowdown in year-on-year inflation, which could lend the Pound support.
Lower inflation is usually bad news for interest rate hike-seeking traders, but the Bank of England (BoE) seems unlikely to raise interest rates in the near-term and a dip in consumer price pressures could improve UK consumer conditions and raise confidence.
Australian Dollar gains are possible if Wednesday’s Westpac consumer confidence reading shows improved sentiment and Thursday’s jobs data impresses.
09:30 UK Inflation Rate
23:30 AU Westpac Consumer Confidence Index
00:30 AU Unemployment Rate
00:30 AU Employment Change
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