Last week’s high: AU$1.7412
Last week’s low: AU$1.7221
Surprise Trade Deficit Triggered Australian Dollar Losses
The Pound ended last week trading up against the Australian Dollar, but UK domestic data wasn’t completely supportive.
On the plus side, the UK services PMI showed higher-than-expected growth.
Less helpfully, new car sales in 2017 declined overall. This was the first annual drop in six years and was blamed on falling demand for diesel vehicles.
Australian Dollar traders had a bitterer pill to swallow last week, when the national trade balance printed much lower than expected.
The revised figures for November showed the largest trade deficit in over a year. This was also the first case of two consecutive deficits since October 2016.
The unpleasant surprise alarmed Australian Dollar traders and triggered a late-week AUD slide.
AUD Outlook: Pound could Fall on UK Trade Data
This week may be a relatively quiet one for currency traders, as there are only a small number of data releases ahead.
The main event for Pound traders will be Wednesday’s trade balance, which experts believe will show a widening of the current deficit.
This is considered high-impact news and could cause a Pound to Australian Dollar decline.
On the other hand, the NAB Australian business confidence score is tipped to rise on Wednesday, which may boost the ‘Aussie’.
00:30 AU NAB Business Confidence (December)
09:30 UK Balance of Trade (November)
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