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.
00:00 Australian HIA New Home Sales
07:00 UK Nationwide Housing Prices
00:30 Australian NAB Business Confidence
09:30 UK Mortgage Approvals and Lending
09:30 UK BoE Consumer Credit
00:30 Australian Inflation Rate
Australian Manufacturing PMI
00:30 Australian Building Permits
09:30 UK Manufacturing PMI
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