Last week’s high: AU$1.8425
Last week’s low: AU$1.8207
Australian Dollar Unstable as Risk Appetite Fluctuates
The Pound was met by volatility against the Australian Dollar last week as rising geopolitical tensions caused market risk appetite to fluctuate.
Also prompting the GBP/AUD exchange rate to trade in a wide range was the ongoing speculation regarding the Bank of England’s (BoE) policy plans for the coming year.
However ultimately the pairing ended the week’s session a little lower as some disappointing production figures from the UK bolstered fears that Britain’s growth will have slowed in the first quarter.
Meanwhile the ‘Aussie’ was able to end the week on a high note despite China posting a surprise trade deficit.
AUD Outlook: GBP to Strengthen on Inflation, Wage Figures?
Looking ahead to the coming week the GBP/AUD exchange rate may look to push higher during the first half of the session with the release of the UK’s latest wage growth and inflation figures.
The data is expected to confirm that both wage growth and inflation have remained solid at the start of the year and may help to bolster confidence in the BoE to accelerate the pace of monetary tightening this year.
Meanwhile Australia will publish its own labour report on Thursday, with the Australian Dollar likely to push back against Sterling if unemployment falls as expected.
01:30 AU RBA Minutes
09:30 UK Unemployment Rate (Feb)
09:30 UK Wage Growth (Feb)
09:30 UK Inflation (Mar)
02:30 AU Unemployment Rate
09:30 UK Retail Sales (Mar)
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