GBP/AUD loses almost 10 cents in a week, will the downtrend continue?

Sterling begun the month on the back-foot as I’ve covered in the Sterling section of my report, and one of the biggest benefactors of Sterling weakness has been the Australian Dollar, as the currency has been going from strength to strength in recent weeks.

The reasons behind the Aussies boost in value can be put down to commodity prices rallying, and in particular the value of iron ore which is actually Australia’s most lucrative commodity.

Oil has also seen a rise in prices as OPEC (The Organisation of the Petroleum Exporting Countries) plans to cut production which as buoyed the Aussie Dollar further, and a strong uptick in Inflation from 0.1% to 0.5% in the early hours of yesterday morning has kept AUD on track for further gains.

Over the past week, the Pound has lost almost 10 cents against the Aussie dollar due to the uncertainty surrounding the UK governments Brexit plans and permissions. I expect to see the GBP/AUD pair approach the 52 week lows in the late 1.50’s if Theresa May’s speech outlines a Hard Brexit bias as many fear.

Australian Employment data likely to be a key release this week

Aside from Theresa May’s speech later this morning (11.45am) and the impending Supreme Court decision, I’m expecting Unemployment Figures out of Australia to be the key release for the GBP/AUD pair this week.

The figures will be released in the early hours of Wednesday morning, and will reflect the change in employment rates for Australia throughout last month. Analysts are expecting to see the Unemployment Rate remain at the 5.7% mark, but do expect to see movement within AUD exchange rates if the actual figure deviates from this level.

Get in touch with your dedicated broker early today if you have an Australian Dollar buying requirement. Theresa Mays Brexit speech could result in your requirement becoming more expensive. Call us on 01494 725 353 or email me here if youd like to learn more.

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