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GBP/AUD Exchange Rate Soars as RBA Confirms Rate Cuts on the Table

Last week’s high: AU$1.8330

Last week’s low: AU$1.7875

 

Australian Dollar Falters on RBA Rate Cut Concerns

The Pound Australian Dollar exchange rate rocketed higher last week after Reserve Bank of Australia (RBA) Governor Philip Lowe suggested that the next move in interest rates is ‘evenly balanced’ between a hike and a cut.

This erased the ‘Aussie’s gains from the start of the week after the RBA struck an upbeat tone following its first policy meeting of 2019.

Meanwhile the Pound got off to a poor start last week on the back of some weak UK PMI figures that revealed Britain’s private sector was close to stalling in January.

However Sterling was able to bounce back at the end of the week after Bank of England Governor Mark Carney appeared to rule out the chances of a rate cut anytime in the foreseeable future.

 

AUD Outlook: UK GDP to Support Sterling?

Looking ahead, the release of the UK’s latest GDP and Inflation figures will be in focus for GBP investors this week, potentially helping to buoy the Pound if they both print as robustly as expected.

Meanwhile the Australian Dollar may come under pressure again at the start of this week if domestic consumer confidence is shown to have softened again in February.

 

Key Events

11th February

09:30 UK GDP (Q4)

09:30 UK Business Investment (Q4)

09:30 UK Trade Balance (Dec)

09:30 UK industrial Production (Dec)

12th February

00:30 AU Business Confidence (Jan)

23:30 AU Consumer Confidence (Feb)

13th February

09:30 UK Inflation Rate (Jan)

15th February

09:30 UK Retail Sales (Jan)

 

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

 

Alastair Archbold

Foreign Exchange Manager

aja@fcgworld.co.uk

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