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GBP/AUD Sinks as Brexit and Leadership Uncertainty Weighs on Sterling

Last week’s high: AU$1.8390

Last week’s low: AU$1.8185

 

Australian Dollar Suffers from Rising Fears of RBA Rate Cut

The Pound sank against the Australian Dollar at the beginning of last week despite the ongoing US-China trade war holding back risk appetite for the ‘Aussie’.

AUD trader optimism, however, could be running out due to fears that the Reserve Bank of Australia would decrease interest rates in June.

Thursday saw the ‘Aussie’ take a hit from the poor Australian building permit figures for April, which sank by -4.7%.

Sterling, meanwhile, struggled on increasing uncertainty surrounding Brexit and the future leadership of the Conservative Party.

The Pound closed the week down against the Australian Dollar, with no signs of a consensus emerging in Parliament regarding Brexit, and mounting gloom about the future of the UK economy.

 

AUD Outlook: Brexit and RBA Rate Decision in Focus

Pound traders are going to be focusing on political developments this week, with the uncertainty surrounding both Brexit and the future leadership of the Conservative Party remaining in the spotlight.

There is a lot of upcoming Australian data next week, with the RBA set to announce its interest rate decision on Tuesday, with some expectations that there will be 25 basis point cut to 1.25%.

Pound traders, meanwhile, will be awaiting the Markit Construction PMI figures on Tuesday, which are expected to hold steady at 50.5.

 

Key Events

3rd June

09:30 UK Markit Manufacturing PMI (May)

4th June

05:30 AUD RBA Rate Statement

05:30 AUD RBA Interest Rate Decision

09:30 UK Markit Construction PMI (May)

5th June

02:30 AUD GDP (YoY) (Q1)

02:30 AUD GDP (QoQ) (Q1)

6th June

02:30 AUD Exports (Apr)

02:30 AUD Trade Balance (Apr)

23:30 AUD AiG Performance of Construction Index (May)

7th June

02:30 AUD Home Loans (Apr)

 

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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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