‘Aussie’ Tumbles Further on Lack of Economic Data
Continuing its downward spiral the AUD saw almost a 1% drop against the pound; a slight recovery has seen it rest just above the 0.6000 level. Many other major currencies took advantage of the wandering AUD albeit the ‘Kiwi’ which fell parallel with the AUD.
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Analysts wait with anticipation for the first major economic figures to be released in over a week; employment data expected to produce positive sentiment for the AUD due out on Thursday. This should provide some direction for the floundering currency and we could well expect the AUD to claw back some of its recent losses.
Until then Chinese Consumer Price Index (CPI) and Product price Index (PPI) data will be revealed today at 11:30am. Expected on average to improve from last month this should give investors greater confidence in the strength of the Chinese economy and subsequently the Australian Dollar.
GBP Continues its Bull Run, May Only be Getting Started
Gone are the days of 62c pence per dollar many analysts believe; with article 50 officially underway and the logistics of a ‘Brexit’ unfolding the Pound despite previous forecasts is recovering. Believed to be a mix between the UK’s consistently over performing economy and a realisation from the market of an overreaction over the fear of a European exit.
Bank of England Governor Mark Carney is due to speak tonight at 6pm on the health and future of the UK economy. Although the UK has performed well many believe this does not warrant any tightening on monetary policy however if it continues to perform pressure will mount to eventually raise interest rates. Following Governor Carney’s address will be the quarterly average earnings Index and unemployment rate figures. Expected to remain much the same, if these come out better than expected this would be a great sign for the UK and we could expect a strong rally in the ‘Sterling’.
The AUD is currently trading at 0.6002 against the GBP