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Brexit Optimism Propels GBP/AUD Exchange Rate to Two-Week High

Last week’s high: AU$1.8135

Last week’s low: AU$1.7851

Pound Soars on Hopes of a Brexit Breakthrough

The Pound to Australian Dollar exchange rate initially surged last week as a positive GDP released helped to quell fears the UK may slip into a recession this year.

GBP/AUD consolidated these gains through the mid-week as UK political headlines remained conducive to the UK avoiding a no-deal Brexit in October.

Sterling then closed out the week on a high as reports suggested the UK and EU may be close to a breakthrough on a Brexit deal.

Meanwhile, the Australian Dollar got off to a poor start last week, coming under pressure through the first half of the session in response to some gloomy business and consumer confidence figures.

However the ‘Aussie’ fared better in the latter half of the week as market risk appetite was boosted by easing US-China trade tensions.

AUD Outlook: UK Politics and BoE Rate Decision in Focus this Week

Looking to the week ahead, there remains a significant risk that UK political developments will continue to dictate movement in the Pound.

There will also be plenty of data for GBP investors to sink their teeth into this week, with the UK’s inflation and retail sales releases being capped off by the Bank of England’s (BoE) latest rate decision.

Meanwhile the main event on Australian data calendars this week will the country’s latest jobs report. Could we see a rise in unemployment undermine the ‘Aussie’?

Key Events

17th September

02:30 AU RBA Minutes

18th September

09:30 UK Inflation Rate (Aug)

19th September

02:30 AU Unemployment Rate (Aug)

09:30 UK Retail Sales (Aug)

12:00 UK BoE Rate Decision

 

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Alastair Archbold
Currency Trader
T: 01442 892 062

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