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GBP/AUD Outlook: Will Services PMI Boost Pound Sterling?

Last week’s high: AU$1.8146

Last week’s low: AU$1.7871

Pound Australian Dollar Losses Seen on Construction PMI

There was noticeable GBP/AUD exchange rate volatility last week, ending with Pound losses against the Australian Dollar.

Initial support from hopes for a speedy resolution to Brexit talks gave GBP a boost, but gloomy forecasts followed a late-week construction PMI.

Furthermore, the Australian Dollar was bolstered by September’s trade balance reading, which showed surplus growth instead of the expected reduction.

AUD Outlook: Turbulence ahead on PMI and GDP Stats

This week will see high-impact data from the UK and Australia, starting off with this morning’s UK services PMI.

The PMI figure could trigger a sharp GBP/AUD exchange rate rise if it increases, as the UK services sector contributes the most to national economic growth.

Following this will be tomorrow’s Reserve Bank of Australia (RBA) interest rate decision – RBA officials could boost Australian Dollar demand by hinting at a 2019 interest rate hike.

Fast forward to Friday and the RBA’s monetary policy statement will come out – potentially providing a support level similar to the RBA rate decision.

This week’s last major news will be the UK’s latest GDP figures. If the readings rise as forecast then the GBP/AUD exchange rate could close higher before the weekend.

 

Key Events

5th November

09:30 UK Services PMI

6th November

03:30 Reserve Bank of Australia Interest Rate Decision

9th November

00:30 Reserve Bank of Australia (RBA) Statement on Monetary Policy

09:30 UK GDP Growth Rate

 

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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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