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GBP/AUD Slides as UK GDP Disappoints

Last week’s high: AU$1.8471

Last week’s low: AU$1.81879

Pound Weakened as UK Growth falls to 0.1%

The Pound Australian Dollar exchange rate trended lower again last week as Sterling was rocked by some much weaker-than-expected growth figures.

UK economic growth was shown to have slowed from 0.4% to just 0.1% during the first quarter of 2017, its slowest pace of growth since 2012.

Meanwhile if not for the UK’s lacklustre GDP figures, the Australian Dollar may have faced some notable losses against Sterling last week.

AUD came under sustained pressure during the previous session, largely due to a resurgent US Dollar (USD), which led to markets shunning riskier currencies such as the ‘Aussie’.

AUD Outlook: Will AUD Slide as RBA Leaves Rates on Hold?

Looking ahead to this week’s session the GBP/AUD exchange rate may be able to find its feet again following the Reserve Bank of Australia’s (RBA) rate decision on Tuesday.

The RBA is widely expected to leave rates on hold again in May, with the Australian Dollar likely to weaken if the bank remains dovish in its economic outlook.

Meanwhile should the Pound look to recover this week it will be reliant upon some strong PMI figures, with Sterling likely to struggle if private sector activity remained subdued in April.

 

Key Events

1st May

09:30 UK Manufacturing PMI (Apr)

2nd May

05:30 AU RBA Rate Decision

09:30 UK Construction PMI (Apr)

3rd May

02:30 AU Trade Balance (Mar)

09:30 UK Services PMI (Apr)

 

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To keep up to date with the Australian Dollar, visit the AUD blog in our Currency News section.

 

James Baxter

Currency Trader
T: 01442 892 062

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