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Is GBP/AUD Exchange Rate Recovery ahead on UK GDP Data?

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.

 

Key Events

6th August

23:30 Australian AIG Construction Index

7th August

05:30 Reserve Bank of Australia (RBA) Interest Rate Decision

10th August

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

Alastair Archbold

Currency Trader

aja@fcgworld.co.uk

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