Last week’s high: AU$1.7729
Last week’s low: AU$1.7396
Australian Dollar Strengthened by Impressive GDP Figures
The Pound Australian Dollar (GBP/AUD) exchange rate got off to a slow start last week, despite some upbeat PMI figures helping to strengthen optimism in the UK economy.
The second half of the week proved to be a bit more positive for Sterling however as it was lifted by comments from the Bank of England’s Dave Ramsden, who hinted that a rate hike may still go ahead in 2018.
Meanwhile the ‘Aussie’ found some notable support in the first half of last week’s session, largely thanks to a better-than-expected first quarter GDP reading on Wednesday.
However the Australian Dollar was forced to relinquish all of these gains by the end of the week, as a sharp downturn in market risk appetite saw investors shun the currency.
AUD Outlook: Can Rising Inflation Help Bolster the Pound?
Looking ahead, it’s set to be a busy session in terms of UK data this week. kicking off with the UK’s latest production figures, which could prompt a slide in the GBP/AUD exchange rate if they remain as weak as expected.
However the main focus for GBP investors will be on the UK’s latest inflation and wage growth figures, with an uptick in either likely to buoy the Pound on hopes it will bolster the chances of a BoE rate hike later in the year.
Meanwhile the Australian Dollar could advance in the tail end of the week if Australia’s latest labour report impresses.
09:30 UK Trade Balance (Apr)
09:30 UK Industrial Production (Apr)
02:30 AU Business Confidence (May)
09:30 UK Unemployment Rate (Apr)
09:30 UK Wage Growth (Apr)
01:30 AU Consumer Confidence (Jun)
09:30 UK Inflation Rate (May)
02:30 AU Unemployment Rate (Apr)
02:30 AU Employment Change (Apr)
09:30 UK Retail Sales (May)
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