Yesterday’s high: AU$1.6923
Yesterday’s low: AU$1.6812
Pound Retreats as May’s Future Looks Bleak
The GBP/AUD exchange rate was forced to cede its early gains on Thursday as investors shied away from the Pound amidst rising political uncertainty, with markets fearing that Theresa May could face a leadership challenge in the near future as criticism of the PM within her own party grows.
The sharp drop in Sterling sentiment also helped the Australian Dollar rally from its worst levels on Thursday, following the release of Australia’s latest retail sales data, with sales unexpectedly declining at the start of the third quarter.
AUD Outlook: Brexit Concerns to Hang over Sterling?
With little notable domestic data set to be released for either currency for the remainder of this week, movement in GBP/AUD is likely to be influenced by other factors.
In regards to the Pound this is likely to be the ongoing uncertainty over Theresa May’s leadership and its impact on Brexit negotiations, with MEPs recently claiming that internal quarrels in the UK government are hampering talks.
Meanwhile, the Australian Dollar’s fortunes will be largely dependent on the performance of the latest US non-farm payroll figures, with any rise in the ‘Greenback’ likely to cause investors to drop the riskier ‘Aussie’.
09:30 UK Trade Balance Aug
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