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GBP/AUD Losses ahead on Higher AU Inflation Rates?

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.

 

Key Events

24th July

11:00 Confederation of British Industry (CBI) Business Optimism Index (Q3)

11:00 Confederation of British Industry (CBI) Industrial Orders (July)

25th July

02:30 Australian Inflation Rate (Q2)

11:00 Confederation of British Industry (CBI) Distributive Trades (July)

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.

Alastair Archbold

Currency Trader

aja@fcgworld.co.uk

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