Last week’s high: AU$1.7811
Last week’s low: AU$1.7602
BoE’s Brexit Warning Drags GBP/AUD Down
The Pound fell to more than a two-week low against the Australian Dollar last week, following a series of cautious statements from the Bank of England (BoE).
The BoE hiked interest rates from 0.5% to 0.75%, but Governor Mark Carney rattled GBP traders by suggesting that a bad Brexit deal could bring a rate cut.
A slowdown in Australian manufacturing activity was reported last week, but the AUD ultimately rallied against the Pound thanks to a larger-than-expected trade surplus expansion.
AUD Outlook: GBP/AUD could Recover on UK GDP Growth
There is a chance for the Pound to regain lost ground this week, if Friday’s UK Q2 GDP stats show growth. This is the forecast outcome and could dispel the current cloud of pessimism hanging over GBP traders.
On the other side of the pairing, the Australian Dollar could appreciate on Tuesday and Friday if Reserve Bank of Australia (RBA) officials hint at higher interest rates in the coming months.
23:30 Australian AIG Construction Index
05:30 Reserve Bank of Australia (RBA) Interest Rate Decision
02:30 Reserve Bank of Australia (RBA) Monetary Policy Statement
09:30 UK Construction Output
09:30 UK GDP Growth Rate
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