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GBP/AUD Exchange Rate Plummets after BoE Leaves Rates on Hold

Last week’s high: AU$1.82348

Last week’s low: AU$1.79153

Sterling Crashes as BoE’s ‘Unreliable Boyfriend’ Returns

A notable drop in market risk appetite allowed the Pound Australian Dollar exchange rate to tick higher throughout much of last week’s session.

This was also aided by the release of Australia’s latest retail sales figures as domestic sales were shown to have remained flat in March.

However this came to an abrupt end on Thursday as the Bank of England (BoE) voted to leave interest rates on hold following its May policy meeting.

The freeze was a major reversal from the bank’s forward guidance in its previous meetings and led critics to once again call BoE Governor Mark Carney the ‘Unreliable Boyfriend’. GBP/AUD relinquished all of its gains for the week on the news.

AUD Outlook: Will Uptick in Wage Growth Fuel a Rally in GBP?

Looking ahead the GBP/AUD exchange rate may rebound this week with the release of the UK’s latest labour report, with an expected uptick in wage growth likely to reflect well on the Pound.

Meanwhile the Australian dollar may struggle to advance this week as economists forecast Australia’s own earning’s figures will reveal that wage growth remained subdued in the first quarter.

 

Key Events

15th May

01:30 AU RBA Minutes

09:30 UK Unemployment Rate (Mar)

09:30 UK Wage Growth (Mar)

16th May

02:30 AU Wage Price Index (Q1)

17th May

02:30 AU Unemployment Rate (Apr)

02:30 AU Employment Change (Apr)

 

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

 

James Baxter
Currency Trader
T: 01442 892 062

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