GBP/AUD rates have spiked back up during Tuesday’s trading, following positive UK PMI Services data this morning. The figure released of 59.1 came in above the expected 57.9 and immediately gave Sterling a boost against the AUD.
The markets had been poised overnight for the release of the latest Reserve Bank of Australia (RBA) interest rate decision and subsequent statement. Interest rates were kept on hold at 2.5% as expected but RBA governor Glen Stevens alluded to the fact they would remain on hold for the foreseeable future, which is likely to handicap any AUD spikes in the short-term. With GBP/AUD rates moving back through 1.81 on the exchange today, it seems to have diluted any hope that last week’s positive momentum for the AUD was going to move it below 1.80 against Sterling anytime soon.
Looking ahead to the rest of the week and the key day is likely to be Thursday. Overnight we have the release of the latest Australian unemployment figures and then the Bank of England (BoE) interest rate decision and monetary policy statement. These are usually key market and are likely to cause additional market volatility.
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