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GBP/AUD Exchange Rate Rocked by Trade Uncertainty and Recession Fears

Last week’s high: AU$1.7933

Last week’s low: AU$1.7717

Global Recession Jitters Shake Markets

The Pound to Australian Dollar exchange rate met with considerable volatility last week as concerns over trade and slowing global growth rocked market confidence.

A barbed back and forth between the US and China spurred fluctuating risk-appetite throughout the session.

The risk-sensitive ‘Aussie’ was further unsettled by an inversion of the US bond yield curve which sparked concerns for a potential global recession.

Meanwhile, the Pound mounted a data-driven recovery this week. Concerns for the health of the UK economy were eased with the release of upbeat wage growth, inflation and retail sales.

Coupled with some modest Brexit optimism this saw Sterling close the session on a high note.

AUD Outlook: How Will the RBA Minutes Impact the ‘Aussie’?

Looking to the week ahead, the minutes from the Reserve Bank of Australia’s (RBA) latest policy meeting could influence the GBP/AUD exchange rate.

AUD investors will be looking for any sign the RBA may be considering further rate cuts.

In the absence of notable UK economic data, expect UK political developments to act as the main catalyst for Pound movement.

 

Key Events

20th August

02:30 AU RBA Minutes

11:00 UK CBI Industrial Orders (Jun)

21st August

09:30 UK Public Sector Borrowing (Jul)

22nd August

00:00 AU Services PMI (Aug)

00:00 AU Manufacturing PMI (Aug)

11:00 UK CBI Distributive Trades (Aug)

 

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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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