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GBP/AUD Decline Triggered by RBA Rate Hike Optimism

Yesterday’s high: AU$1.7599

Yesterday’s low: AU$1.7433

GBP/AUD Rate Turbulence Ahead

The Pound struggled against the Australian Dollar yesterday as traders were alarmed when the UK borrowing deficit was reported to have risen by more than expected.

The Australian Dollar, meanwhile, rallied thanks to Reserve Bank of Australia (RBA) news.

While he was generally cautious, RBA Governor Philip Lowe still stated that the next RBA interest rate move was likely to be a hike instead of a cut.

AUD Outlook: Pound Crash possible on Today’s Budget

There isn’t much high-impact Australian news out this week, so UK news could leave the Pound the dominant force in the GBP/AUD pairing, and Sterling could tumble on today’s budget announcement.

Chancellor Philip Hammond will have to factor in yesterday’s widening borrowing deficit, as well as clamours for increased public spending for services like the NHS.

The Pound could well drop if Hammond’s plans seem unsustainable, while reports of falling business investment on Thursday might trigger further GBP losses.

Key Events

22nd November

12:30 UK Autumn Budget

23rd November

09:30 UK GDP Growth Rate

09:30 UK Business Investment

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

James Baxter

Senior Currency Broker
T: 01442 892 062

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