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.
12:30 UK Autumn Budget
09:30 UK GDP Growth Rate
09:30 UK Business Investment
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