GBP/AUD below 1.65, will the RBA look to cut interest rates? (Mike Vaughan)

AUD GBP Lower Ahead of PMI Data for the UK Economy

Today the Australian Dollar has rallied back through the 1.65 barrier against the pound rallying just shy of 1% on the day. This comes on what could prove to be a very busy week for both the Bank of England and Reserve Bank of Australia. Both central banks will release their respective interest rate decisions this week (RBA tomorrow and BofE Thursday). For me it is unlikely either will do anything although the decision from the UK may be particularly scrutinised with it being the first of Mark Carney’s reign as the head of the Bank of England. For this reason it could prove to be a very busy week but I would still lookf or longer term moves against the Aussie as I feel the central bank in Australia may look to act before their British counterparts.

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