Last week’s high: AU$1.7872
Last week’s low: AU$1.7581
Lower BoE Rate Hike Odds Drag GBP/AUD down
The Pound struggled in trading against the Australian Dollar last week, progressively declining due to negative UK economic data.
UK ecostats showed that wage growth, inflation and retail sales were all slowing, which rattled GBP traders and led to predictions for no August Bank of England (BoE) interest rate hike.
Although Australian Dollar trader optimism was dented by cautious Reserve Bank of Australia (RBA) minutes last week, the AUD/GBP exchange rate still rose.
This was partly down to supportive employment rate data, as well as falling confidence in the US Dollar driving up risk sentiment and demand for the AUD.
AUD Outlook: Potential for AUD Gains on Inflation Stats
This week might not see a repeat of last week’s notable GBP/AUD movement, simply because of a comparative shortage of economic data.
UK ecostats will consist of Confederation of British Industry (CBI) figures which are forecast to print poorly in two of three cases.
On Australia’s side, the AUD/GBP exchange rate could improve if Wednesday’s inflation rate data shows growth in Q2 as forecast.
11:00 Confederation of British Industry (CBI) Business Optimism Index (Q3)
11:00 Confederation of British Industry (CBI) Industrial Orders (July)
02:30 Australian Inflation Rate (Q2)
11:00 Confederation of British Industry (CBI) Distributive Trades (July)
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