Last week’s high: AU$1.7952
Last week’s low: AU$1.7792
Australian Dollar Rocked by Trade War Fears
The Pound Australian Dollar exchange rate was met by volatility last week, with mounting concerns over US trade policy hurting the ‘Aussie’, and Sterling struggling in the face of growing Brexit uncertainty.
In terms of data the Pound was supported by the release of the UK’s latest PMI figures, with robust growth in the private sector helping to drive expectations of an August rate hike from the Bank of England (BoE).
Australian data proved to be a little more mixed however, with AUD initially sliding following a dovish policy meeting by the Reserve Bank of Australia (RBA), before being lifted by an upbeat services PMI and some robust retail sales figures.
AUD Outlook: Rebound in Factory Output may Strengthen Pound
Looking ahead, the GBP/AUD exchange rate could tick higher at the start of this week, with an expected upswing in UK industrial production in May potentially lending some support to Sterling.
However a lull in salient data throughout the rest of the week may leave the pound to flounder in the second half of the session.
Meanwhile the Australian Dollar could struggle next week, with Australia’s latest sentiment figures forecast to show that both consumer and business confidence is edging lower, likely prompted by recent trade concerns.
02:30 AU Business Confidence (Jun)
09:30 UK Trade Balance (May)
09:30 UK Industrial Production (May)
01:30 AU Consumer Confidence (Jul)
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