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Brexit News Sends GBP/AUD 0.6% Higher

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.

Key Events

29th November

09:30 UK Bank of England (BoE) Consumer Credit

30th November

00:05 UK GfK Consumer Confidence

22:30 AU AIG Manufacturing Index

1st December

09:30 UK Manufacturing PMI

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To keep up to date with the Australian Dollar, visit the AUD blog in our Currency News section.

James Baxter

Senior Currency Broker
T: 01442 892 062

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