Yesterday’s high: AU$1.7550
Yesterday’s low: AU$1.7392
GBP Crushed by OECD Pessimism
Confidence in the Pound initially rose on Tuesday, when the Bank of England (BoE) reported that UK banks could withstand any serious economic shocks.
Unfortunately, the Pound later tumbled when the OECD downgraded its UK growth forecasts for 2018 and 2019.
The organisation was especially critical of the Brexit process, warning that damage control was only possible by maintaining close economic ties with the EU.
While Australian economic news was not especially supportive, it wasn’t bad enough to reverse the AUD/GBP advance.
The ANZ Roy Morgan consumer confidence measure showed a small drop in the last week of November, but the 115 point score remained above the long-term average of 112.9.
AUD Outlook: GBP Regains Lost Ground
After fluctuating for most of Tuesday, Sterling was able to storm higher on the news that the UK and EU have come to an agreement regarding the UK’s divorce bill.
The Pound gained on all of the majors, and advanced by 0.6% against the Australian Dollar.
Australian Dollar traders are continuing to hold out for the week’s biggest Australian economic news – a manufacturing output reading due on Thursday.
This is expected to show minor growth in the sector, which could lend AUD modest support.
09:30 UK Bank of England (BoE) Consumer Credit
00:05 UK GfK Consumer Confidence
22:30 AU AIG Manufacturing Index
09:30 UK Manufacturing PMI
If you need to make an AUD transfer but don’t have an account with us just click here to get started.
Senior Currency Broker
T: 01442 892 062