Last week’s high: AU$1.8131
Last week’s low: AU$1.7788
Australian Dollar Hit by Emerging Market Fears
The Pound Australian Dollar exchange rate surged higher last week as the ‘Aussie’ got caught up in a broad sell-off of emerging market currencies.
However Sterling initially got off to a weak start as some lacklustre UK PMI readings and Brexit uncertainty weighed on the currency.
However a Bloomberg report proved to be a turning point for the Pound in the middle of the session as it suggested the UK and Germany were making progress towards a Brexit deal.
These gains in GBP/AUD were then accelerated at the tail end of the week as Australia’s close trade links to many emerging markets led to the ‘Aussie’ getting swept up in a rout of emerging market currencies.
AUD Outlook: Will Upbeat BoE Outlook Bolster Sterling?
Looking ahead to this week’s session, movement in the Pound is likely to be driven by the Bank of England’s latest policy meeting.
While no policy changes are expected from the bank this week, the meeting could still result in Sterling accelerating if the bank’s economic outlook is broadly upbeat in tone.
However the GBP/AUD exchange rate could still face some headwinds as economists forecast UK unemployment will be shown to have risen in July.
Meanwhile Australia will publish its own labour figures this week, potentially lending support to the Australian Dollar if they reveal a rebound in employment growth last month as expected.
09:30 UK Trade Balance (Jul)
09:30 UK Industrial Production (Jul)
02:30 AU Business Confidence (Aug)
09:30 UK Unemployment Rate (Jul)
09:30 UK Wage Growth (Jul)
01:30 AU Consumer Confidence (Sep)
02:30 AU Unemployment Rate (Jun)
02:30 AU Employment Change (Jun)
12:00 UK BoE Rate Decision
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