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GBP/AUD at Two-Year High on Brexit Optimism

Last week’s high: AU$1.8492

Last week’s low: AU$1.8021

GBP/AUD Boosted by High Hopes for Brexit Deal

The Pound rose to an over-two year high against the Australian Dollar last week, hitting the best exchange rate since June 2016.

This appreciation was caused by renewed hopes for a Brexit deal in the coming weeks which would avoid the potential catastrophe of missing November’s deadline.

Last week’s Australian Dollar losses were mainly caused by a strong US Dollar, which reduced risk sentiment and made the riskier AUD an unappealing prospect.

AUD Outlook: Volatility ahead on Confidence Stats and GDP Data

This week will see some high-impact UK and Australian economic data, with GBP/AUD exchange rate losses on the cards if UK data prints as expected.

The week’s biggest UK data is out on Wednesday, covering GDP and a speech from the Bank of England’s (BoE) Andy Haldane.

Slower GDP growth has been anticipated and Mr Haldane could add to any GBP negativity if he rejects the idea of a 2019 interest rate hike.

Weekly AUD news could be more supportive, if business and consumer confidence rises. The week could end with additional AUD/GBP exchange rate gains if the RBA’s financial stability review suggests economic resilience.

 

Key Events

9th October

01:30 NAB Australian Business Confidence

10th October

00:30 Westpac Australian Consumer Confidence

09:30 UK GDP

10:00 Speech from Bank of England (BoE) Policymaker Andy Haldane

12th October

01:30 Reserve Bank of Australia (RBA) Financial Stability Review

 

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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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