Last week’s high: AU$1.7946
Last week’s low: AU$1.7741
GBP/AUD Drops to Two-Week Low on Slow Brexit Progress
The GBP/AUD exchange rate rose early last week, but failed to maintain these gains and finished the week down.
Brexit concerns were the main reason for Pound losses; EU leaders and Bank of England (BoE) officials warned that faster and clearer progress in Brexit talks was urgently needed.
Australian Dollar movement was aided last week by a US Dollar decline and signs of a potential de-escalation in the US-China trade war.
AUD Outlook: Will GBP/AUD Rally on UK Services PMI?
For Pound traders, this week’s main data will be PMI readings for the manufacturing, construction and services sectors.
The services reading is the most important of the three, as it measures changes to the UK’s largest economic sector. Slower manufacturing and construction sector activity is forecast, but the Pound could still rise sharply if the services PMI rises as expected.
This week’s Australian data releases include an RBA interest rate decision and, later, services and trade balance stats.
The RBA meeting might cause AUD losses if it suggests that an interest rate hike is still unlikely this year.
Wednesday’s AUD/GBP movement is less predictable – a trade surplus expansion is forecast but the Australian services sector is conversely expected to show slowing activity.
09:30 UK Manufacturing PMI
05:30 Reserve Bank of Australia (RBA) Interest Rate Decision
09:30 UK Construction PMI
00:30 Australian AIG Services Index
02:30 Australian Balance of Trade
09:30 UK Services PMI
If you need to make an AUD transfer but don’t have an account with us just click here to get started.