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GBP/AUD Exchange Rate Retreats as UK Political Uncertainty Grows

Last week’s high: AU$1.8872

Last week’s low: AU$1.8547

 

Pound Slumps on Seeming Failure of Cross Party Brexit Talks

The Pound fell back against the Australian Dollar last week as concerns over a lack of progress in cross-party Brexit talks and doubts over Theresa May’s future as PM weighed on Sterling sentiment.

Even a strong first quarter GDP print from the UK was unable to bolster the Pound as analysts warned the pick-up in growth was likely to fade in the second quarter as businesses looked to offload their Brexit stockpiles

Meanwhile the ‘Aussie’ was given a leg up by the Reserve Bank of Australia (RBA) last week as it keep rates on hold, with relief that the bank didn’t cut rates helping AUD/GBP to close the week higher, despite an escalation in US-China trade tensions.

 

AUD Outlook: Continued Uptrend in UK Wage Growth to Boost Sterling?

Looking to the week ahead, we may see the Pound attempt to rally throughout the first half of the session if the latest UK labour figures report that the recent uptrend in wage growth persisted into March.

At the same time, Australia will publish its own employment figures next week, which could dampen demand for the ‘Aussie’ if unemployment rose in line with expectations in April.

However AUD are traders also likely to be on the lookout for any further developments in the US-China trade dispute, with the Australian Dollar likely to face further pressure if tensions continue to escalate.

 

Key Events

14th May

02:30 AU Business Confidence (Apr)

09:30 UK Unemployment Rate (Mar)

09:30 UK Wage Growth (Mar)

15th May

01:30 AU Consumer Confidence (May)

01:30 AU Wage Price Index (Q1)

16th May

02:30 AU Unemployment Rate (Mar)

02:30 AU Employment Change (Mar)

 

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

 

Alastair Archbold
Currency Trader
T: 01442 892 062

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