Will Trump Comments Upset the Australian Dollar against the Pound This Week?
The Australian Dollar Pound exchange rate has seen depreciation of around -0.5% thanks to a strong US Dollar.
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This weakening for the Australian Dollar has mainly come from a strong US Dollar, which has been caused by market optimism about some teased tax plans from Donald Trump.
More local news has actually been positive for Australia, with iron ore prices rising consistently since February 6th.
UK ecostats have been similarly lacking so far today, with the previously influential Article 50 debate process being put on ice this week due to a Parliamentary recess.
Aside from Trump’s tax plan which could come this week or the next, the Australian Dollar is next expected to be moved by this morning’s NAB business confidence figure.
Following this will be further Westpac confidence scores on Wednesday, then January’s unemployment rate and employment change on Thursday.
In the latter case, no change is expected in unemployment while the number of employed persons is set to rise by 10k.
UK jobs data will also be in focus for investors this week, when UK inflation and jobs data comes out today and on Wednesday respectively.
Inflation rates in July are forecast to rise notably on both the month and the year, but this could prove problematic and weaken the Pound if Wednesday’s average earnings figures post a drop, indicating a slowdown in wage growth.
A devaluation could also be caused by claims stats for January and unemployment rate results for December, though current predictions only have a small rise in claims and no unemployment rate change as outcomes.
At the time of writing, the Australian Dollar was trading at a rate of 0.61 against the Pound while the Pound was trading at a rate of 1.63 against the Australian Dollar.