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GBP/AUD Exchange Rate Rallies on US-China Trade Optimism

Last week’s high: AU$1.8444

Last week’s low:  AU$1.8043

Australian Dollar Rallies Ahead of Trump-Liu Meeting

Last week the Pound Australian Dollar (GBP/AUD) exchange rate started the session on a low, as the ‘Aussie’ saw an upswing of support and Chinese stocks surged to a six-month high.

Sterling rose against AUD on Tuesday as UK unemployment held steady at 4% and a record high 32.6 million people were in work.

Wednesday saw the pairing remain relatively steady as the Australian Wage Price Index showed growth had decelerated in the fourth quarter.

The pairing plummeted early during Thursday’s session following the release of the Australian unemployment figure, which held steady at a seven-year low of 5%.

However, the pairing quickly began to rally as the ‘Aussie’ became weighed down by Westpac’s call for RBA rate cuts and Chinese concerns.

Reports emerged that China had banned imports of Australian coal at the Chinese port of Dalian causing the Australian Dollar to slide.

The end of last week saw the pairing plummet as AUD benefitted from news President Trump and Vice Premier Liu were due to meet on Friday.

Liu was named as a ‘special envoy’, meaning he has the authority to negotiate directly on trade matters.

AUD Outlook: Will the Australian Dollar Slide on Falling New Home Sales?

The Pound Australian Dollar (GBP/AUD) exchange rate could rise on Tuesday if Prime Minister Theresa May is able to gain support for her Brexit deal from MPs following her speech.

The Pound could continue to rise on Wednesday if the UK Parliamentary vote on Brexit proves successful.

The end of the week could see the ‘Aussie’ slide if new home sales continue to contract.

This week will end with February’s UK manufacturing PMI. A slowing in output would be GBP-negative.

Key Events

26th February

n/a       GBP Prime Minister Theresa May Speech

n/a       GBP Inflation Report Hearings

28th February

n/a       GBP UK Parliamentary vote on Brexit

28th February

00:30   AUD HIA New Home Sales

21:30   AUD AiG Performance of Mfg Index

1st March

09:30   GBP Markit Manufacturing PMI


David Worthington

Associate Director

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