Sterling Australian Dollar exchange rates could see a big move tomorrow as the RBA governor starts the week discussing the current Australian economy and the value of AUD.
With the RBA surprising the markets with an interest rate cut last week and the AUD subsequently weakening by as much as 2% shortly after the rate change I think the main focus of the speech will be on why the RBA changed monetary policy.
Tuesday will also add to the volatility for GBPAUD exchange rates as Chinese CPI data is released.
With the Chinese recently adding money to the economy in a similar way to QE the data could provide further clues as to what the Chinese may do next to promote growth which has waned in recent times.
As the biggest consumer of Australian natural resources any increase or decrease in demand will have a big impact on the value of the Australian Dollar exchange rate.
Currency is also heavily influenced by what is happening politically and with Prime Minister Tony Abbott grappling with disastrous polls and negative backbenchers I think this could continue to negatively affect the Australian Dollar.
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