Last week’s high: $1.8777
Last week’s low: $1.8356
Australian Dollar Bolstered by Improving Chinese Economy
The Pound Australian Dollar (GBP/AUD) exchange rate struggled last week as Brexit developments lead to a shorter extension to Article 50 than hoped for, while pressure was also increasingly applied on MPs to back Prime Minister Theresa May’s withdrawal agreement or face a no-deal.
The first half of the session saw Theresa May struggle to gain backing for a third ‘meaningful vote’ as changes to the controversial Irish backstop were short in supply. By Tuesday, however, the House of Commons Speaker, John Bercow, ruled out the vote unless ‘substantial’ changes were made to the agreement.
The Australian Dollar, meanwhile, benefited as Asian Dalian iron ore futures surged by nearly 2%. This bolstered the ‘Aussie’ as China is one of Australia’s closest trading partners.
GBP/AUD continued struggling in the second half of the week despite the Brexit deadline being extended as Australian employment data impressed.
However, Sterling recouped losses before the weekend following Theresa May’s announcement that there would be another vote on her Brexit deal.
AUD Outlook: ‘Aussie’ Could Rise on Allayed Fears of RBA Cuts
Looking to the week ahead, Brexit will remain in focus as Theresa May tries to secure backing for her Brexit deal.
Australian Dollar traders, meanwhile, will be looking ahead to Monday’s speech by the Assistant Governor of the Reserve Bank of Australia, Luci Ellis.
Any hints that interest rates are unlikely to be cut would be AUD supportive.
20:30 RBA’s Ellis speech
09:30 UK BBA Mortgage Approvals (Feb)
00:10 RBA’s Kent speech
11:00 UK CBI Distributive Trades Survey (Mar)
07:00 UK Nationwide Housing Prices (Feb)
00:01 UK GfK Consumer Confidence (Mar)
00:30 Australian Private Sector Credit (Feb)
09:30 UK Gross Domestic Product (QoQ) (Q4)
09:30 UK Gross Domestic Product (YoY) (Q4)
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