Last week’s high: AU$1.8170
Last week’s low: AU$1.7768
RBNZ’s Aggressive Rate Cut Prompts Wild Swings in the Australian Dollar
The Pound to Australian Dollar exchange rate traded in a wide range last week as the Reserve Bank of New Zealand’s (RBNZ) larger-than-expected rate cut shocked markets.
The ‘Aussie’ dropped sharply mid-week amid speculation that this would put pressure on the Reserve Bank of Australia (RBA) to keep cutting rates as well.
The surge in GBP/AUD was short-lived, however, with the pairing closing the session on the back foot. This came as a result of heightened Brexit uncertainty and a worrying contraction in UK GDP in the second quarter.
AUD Outlook: Sterling to Sink as UK Wage Growth Slows?
Looking to the week ahead, we expect UK political headlines to exert pressure on the GBP/AUD exchange rate.
The UK’s latest employment report is likely to influence Sterling sentiment this week, with an expected fall in wage growth for June likely to dent the Pound further.
AUD investors will also be focused on domestic employment figures next week.
This could see the ‘Aussie’ struggle in the latter half of the session with a suspected fall in full-time employment last month increasing the odds of another rate cut from the RBA this year.
02:30 AU Business Confidence (Jul)
09:30 UK Unemployment Rate (Jun)
09:30 UK Wage Growth (Jun)
01:30 AU Consumer Confidence (Aug)
02:30 AU Wage Growth (Q2)
09:30 UK Inflation Rate (Jul)
02:30 AU Unemployment Rate (Jul)
02:30 AU Employment Change (Jul)
09:30 UK Retail Sales (Jul)
If you need to make an AUD transfer but don’t have an account with us just click here to get started.
T: 01442 892 062