Friday’s high: AU$1.7245
Friday’s low: AU$1.7063
Sterling Surges Following Uptick in Growth
The Pound rebounded sharply against the Australian Dollar on Friday as the UK currency was buoyed by a stronger than expected trade balance, with Britain’s trade deficit narrowing from £3.46bn to £2.75bn in September.
Aiding Sterling’s startling recovery late last week was the release of NIESR’s latest UK growth estimate, which suggests that Britain’s economic growth is likely to have risen to 0.5% in the last three months.
Meanwhile the ‘Aussie’ came under pressure at the end of last week as the Reserve Bank of Australia (RBA) downgraded its inflation forecasts in its latest Statement of Monetary Policy.
AUD Outlook: UK Inflation to Push Higher?
Looking to the week ahead, the UK will release its latest CPI figures on Tuesday, with economists forecasting that inflation will have risen to 3.1% in October.
The jump may cause Sterling to dip, with investors likely to fear that another month of soaring inflation will have taken its toll on consumers, especially as the Bank of England (BoE) is unlikely to act on the figures having only just raised interest rates earlier this month.
The Australian Dollar may struggle to take advantage of any dip in the Pound however as economists forecast that Australian Business Confidence will fail to show any upward movement in October.
01:30 AU Business Confidence Oct
09:30 UK Inflation Rate Oct
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