Following the aftermath of the election what to look out for this week? (Mike Vaughan)

AUDGBP Tests 0.5600 Once More as BoE Cuts QE

Following the results of the recent election in Australia in which Liberal leader Tony Abbott ousted Kevin Rudd, what is in store for exchange rates this week? Anyone looking at the AUD should look at the following:

– Tuesday – National Australia Bank’s business confidence

– Wednesday – Westpac business confidence

– Wednesday – UK unemployment figures, claimant count

– Thursday – Australian unemployment figures

This week could prove to be very volatile for GBP/AUD. In the past week we have seen the AUD rally over four cents, this is likely to have been partly caused in the run up to the election and now that this has passed I believe we are likely to see the Aussie weaken. With unemployment data in Australia expected to show a slight increase, I would expect to see a shift back towards 1.74/75 over the course of the next few weeks.

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