Last week’s high: AU$1.8428
Last week’s low: AU$1.8246
Pound Volatility Fades as UK Avoids No-Deal Brexit, for Now
Trade in the Pound Australian Dollar exchange rate was notably more subdued last week, with the pairing not experiencing the dramatic swings seen in recent weeks as Brexit was delayed by another six months.
However despite relief that the UK would not crash out of the EU at the end of the week, Sterling still fell back as markets feared how six months of prolonged uncertainty could drag on the UK economy.
Meanwhile the ‘Aussie’ enjoyed modest gains last week as it was buoyed by a broad uptick in the market risk appetite that permeated through the second half of the session.
AUD Outlook: Accelerating Wage Growth to Boost Sterling?
Looking to the week ahead, we may see the Pound begin to be influenced by economic data once again, starting with the release of the UK’s latest labour report on Tuesday.
This may help to bolster Sterling if domestic wage growth is shown to have accelerated in February as forecast.
Meanwhile AUD investors will have their own employment figures to focus on this week, with the Australian Dollar potentially slipping if unemployment rose in line with expectations in March.
02:30 AU RBA Minutes
09:30 UK Unemployment Rate (Feb)
09:30 UK Wage Growth (Feb)
09:30 UK Inflation Rate (Mar)
02:30 AU Unemployment Rate (Mar)
02:30 AU Employment Change (Mar)
09:30 UK Retail Sales (Mar)
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