Foremost Currency Group

Make the most of your currency

Talk to our friendly team:+44 (0)1442 892060

GBP/AUD Investors Anticipate Australian Inflation Report

Last week’s high: AU$1.7709

Last week’s low: AU$1.7313

Pound Ends Higher Against Australian Dollar on Strong UK Data

While the Australian Dollar saw some support last week, and market risk-sentiment was decent, the Pound to Australian Dollar sustained notable gains of almost two cents last week, due mostly to Pound strength.

Sterling was supported throughout the week by Britain’s November job market results, which revealed British wages were climbing faster than expected. Q4’s UK Gross Domestic Product (GDP) projections on Friday were also impressive and offered fresh evidence that Britain’s economy was more resilient in the face of the Brexit process than expected.

The week, however, ended on a disappointing note with GBP/AUD shedding around half a cent. As the World Economic Forum (WEF) 2018 in Davos wrapped up without any major surprises or shocks, risk-correlated currencies like the Australian Dollar rebounded from recent lows.

AUD Outlook: Australian Inflation Data in Focus

Next week’s Australian economic calendar is busier and will likely influence GBP/AUD exchange rate movement.

HIA’s new home sales will be published during Monday’s Asian session, followed on Tuesday by NAB’s Australian business confidence survey from December.

The biggest data event of the week, however, will be on Wednesday when Australia’s Q4 Consumer Price Index (CPI) report will be published.

The Federal Reserve will also be holding its January policy decision meeting during Wednesday’s American session. The Fed’s tone could affect risk-sentiment, which would impact the risky ‘Aussie’.

As for the Pound, next week’s UK data is unlikely to be hugely influential meaning Sterling investors are more likely to react to Brexit developments and Bank of England (BoE) speculation.

Key Events

29 January

00:00 Australian HIA New Home Sales

07:00 UK Nationwide Housing Prices

30 January

00:30 Australian NAB Business Confidence

09:30 UK Mortgage Approvals and Lending

09:30 UK BoE Consumer Credit

31 January

00:30 Australian Inflation Rate

1 February

Australian Manufacturing PMI

00:30 Australian Building Permits

09:30 UK Manufacturing PMI

 

If you need to make an AUD transfer but don’t have an account with us just click here to get started.

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

 

James Baxter
Senior Currency Broker
T: 01442 892 062

© Copyright 2013 to 2018 | Foremost Currency Group Ltd | All rights reserved