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GBP/AUD Volatility Ahead on Autumn Budget Announcement

Last week’s high: AU$1.8445

Last week’s low: AU$1.

Higher Brexit Tensions Caused GBP/AUD Losses

The Pound fell to a monthly low against the Australian Dollar last week, with growing fears about a no-deal Brexit result draining GBP trader confidence.

News that the government intends to prepare for a no-deal Brexit in November rattled GBP traders, which enabled an AUD/GBP exchange rate rise.

AUD Outlook: UK Budget and BoE Meeting Coming Up

This week will be a busy one for GBP and AUD traders, with major data due from the UK and Australia.

There might be immediate Pound turbulence on today’s Autumn Budget reveal; Chancellor Philip Hammond could trigger a GBP/AUD rally by unveiling ambitious spending plans.

The Australian Dollar could rise against the Pound if building permits rise as forecast, while Sterling could fall back on a worsening consumer confidence score.

Higher Australian inflation and a larger trade surplus could strengthen the Australian Dollar, with a potential UK manufacturing PMI drop opening the door to additional gains against the Pound.

Pound Sterling could close weekly trading in low spirits, if the Bank of England (BoE) policy meeting reveals a cautious outlook and the later construction PMI drops off.

 

Key Events

29th October

16:30 UK Autumn Budget

30th October

01:30 Australian Building Permits

31st October

01:01 UK GfK Consumer Confidence

01:30 Australian Inflation Rate

1st November

01:30 Australian Trade Balance

09:30 UK Manufacturing PMI

13:00 Bank of England (BoE) Interest Rate Decision

2nd November

09:30 UK Construction PMI

 

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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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