Last week’s high: AU$1.8058
Last week’s low: AU$1.7510
Pound Pummelled by Fallout from Brexit Draft Agreement
The Pound Australian Dollar exchange rate was hit by heavy losses last week as opposition to a draft Brexit agreement saw Theresa May lose two of her key Cabinet members.
These resignations were accompanied by speculation that May could face a vote of no-confidence, further unnerving GBP investors for fears it would increase the risks on a no-deal Brexit.
Meanwhile a solid domestic labour report, which saw Australia’s workforce swell by 32,800 in October helped to turbo-charge the ‘Aussie’ and helped push GBP/AUD down to a two-month low.
AUD Outlook: Sterling Volatility to Persist as Brexit Remains in Focus
Looking ahead to this week’s session, in the absence of any major UK economic data, the focus for GBP investors is likely to remain firmly on Brexit.
This is likely to lead to further volatility in the Pound, especially if events appear to increase the risks of a no-deal Brexit.
Meanwhile movement in the Australian Dollar at the start of the week is likely to be driven by the outlook from the Reserve Bank of Australia as it publishes the minutes from its latest policy meeting.
12:30 AU RBA Minutes
08:20 AU RBA Lowe Speech
11:00 UK CBI Industrial Trends Orders (Nov)
09:30 UK Public Sector Borrowing (Sep)
11:00 UK CBI Distributive Trades (NoV)
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