Last week’s high: AU$1.8361
Last week’s low: AU$1.8115
GBP/AUD Recap: Volatility on Brexit Forecasts
The Pound ultimately rose against the Australian Dollar last week, but there was significant GBP/AUD volatility due to some statements about Brexit.
EU Chief Negotiator Michel Barnier triggered a GBP rally when he predicted concluding Brexit talks by November, while European Commission President Jean-Claude Juncker had the opposite effect when he rejected post-Brexit UK membership of the EU single market.
The Australian Dollar made a late-week rise when better-than-expected employment stats were published.
AUD Outlook: Higher UK Inflation to Cause GBP/AUD Exchange Rate Rise?
The Pound could rise sharply against the Australian Dollar this week, depending on the reaction to Wednesday’s UK inflation data.
Before then, however, the Australian Dollar could advance if the release of Tuesday’s Reserve Bank of Australia (RBA) minutes excites traders.
If these minutes along with Thursday’s RBA bulletin both reveal that RBA policymakers are planning a 2019 interest rate hike then the AUD/GBP exchange rate could rise.
If higher UK inflation is reported then the Pound could jump against the Australian Dollar – beyond this, support for Sterling might drop if later retail sales figures show a slowdown.
The week will end with a Bank of England (BoE) bulletin. Similarly to the RBA bulletin, this might boost the Pound if it hints at an interest rate hike in 2019.
01:30 Reserve Bank of Australia (RBA) Meeting Minutes
09:30 UK Inflation Rate
02:30 Reserve Bank of Australia (RBA) Bulletin
09:30 UK Retail Sales
12:00 Bank of England (BoE) Quarterly Bulletin
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