Last week’s high: AU$1.7795
Last week’s low: AU$1.7539
Australian Dollar Weakened by Labour Report
The Pound Australian Dollar (GBP/AUD) exchange rate closed last week’s session up by over a cent, as the ‘Aussie’ slumped in the wake of some lacklustre domestic labour figures, which revealed a sharp drop in full-time employment.
The ‘AUD exchange rate also faced pressure throughout the week as an uptick in geopolitical uncertainty and trade tensions dragged on market risk appetite.
Meanwhile the Pound had a bit of a mixed session on the back of some disappointing economic data, with industrial production, wage growth and inflation all underperforming, with an uptick in retail sales casting the only positive light on the UK economy.
AUD Outlook: BoE Rate Decision in Spotlight as GBP Investors Eye August Hike
Looking ahead, the main driver of movement in the GBP/AUD exchange rate this week is likely to be the Bank of England’s (BoE) rate decision on Thursday.
While its June meeting is not expected to result in any changes to the BoE’s monetary policy, markets will be on the lookout for any hints that the bank could be targeting a possible rate hike in August, with the Pound likely to surge if this appears to be the case.
Meanwhile AUD investors will be focusing on the language used by the Reserve Bank of Australia (RBA) in its latest bulletin, with the Australian Dollar expected to fall if the RBA remains dovish on Australia’s economic prospects.
11:00 UK CBI Industrial Orders (Jun)
14:30 AU RBA Lowe Speech
02:30 AU RBA Bulletin
12:00 UK BoE Rate Decision
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