Last week’s high: AU$1.8357
Last week’s low: AU$1.8019
US-China Trade Hopes Help Australian Dollar Avoid Major Losses
The Pound to Australian Dollar (GBP/AUD) exchange rate struggled last week as fears over the prospect of a no-deal Brexit increased, causing Pound sentiment to slump.
UK premier Boris Johnson successfully secured a five week prorogation of parliament, narrowing the window in which cross-party opposition might block a no-deal Brexit and bring a vote of no-confidence against the Prime Minister.
The Australian Dollar found modest support at the top of the week following some positive rhetoric from China. This went some way to easing US-China trade tensions, but investors remained reticent.
Interest in the ‘Aussie’ was also limited ahead of this week’s upcoming Reserve Bank of Australia (RBA) policy decision.
AUD Outlook: How Dovish Will the RBA Be?
Major Pound to Australian Dollar exchange rate volatility can be expected this week.
UK Parliament will reconvene from the 3rd September until the end of the week, so any surprising developments in domestic politics or Brexit could have a significant impact on the pairing.
Plenty remains on the agenda for Australian Dollar investors. The Reserve Bank of Australia (RBA) is expected to offer near-term stimulus indications during Tuesday’s policy decision, but major Australian data, particularly retail sales and growth stats, could affect the outcome in the meantime.
02:30 Australian Retail Sales
05:30 Reserve Bank of Australia (RBA) Policy Decision
02:30 Australian Growth Rate
09:30 UK Services and Composite PMI
02:30 Australian Trade Balance
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