Friday’s high: AU$1.7096
Friday’s low: AU$1.6918
Sterling Jumps as Service PMI Hints at Strong Growth in the Fourth Quarter
The Pound mounted a notable recovery against the Australian Dollar on Friday, recouping about half of Thursday’s losses on the back of a surprising uptick in the UK’s latest Services PMI.
The jump in service sector activity follows on from unexpected rises in both the manufacturing and construction PMI’s earlier in the week.
The data suggests a strong start to the fourth quarter, with analysts suggesting that data is consistent with quarterly growth estimates of 0.5%.
Sterling’s rally was also aided by the release of Australia’s latest retail sales figures earlier in the session, with the ‘Aussie’ tumbling as sales failed to show any growth in September.
AUD Outlook: RBA Rate Decision Ahead
Looking to the week ahead, the Reserve Bank of Australia (RBA) is set to make its latest rate decision on Tuesday and investors will be watching closely for any hints that the Bank could alter monetary policy, especially given the recent downturn in retail sales.
In the meantime a lull in domestic data means that the Pound may struggle to advance in the first half of this week, with any movement in the currency likely to be driven by Brexit sentiment.
04:30 RBA Rate Decision Nov
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