The Australian Dollar has found some support during the week and the longest period of sustained strength vs the Pound in weeks.
The absence of a lack of clarity provided by the US FOMC minutes during mid-week saw a big strengthening of riskier commodity based currencies as the Fed were not entirely clear as to when the US may raise interest rates.
This has led to global investors ploughing into currencies such as the AUD, NZD & ZAR.
With Chinese data now a bit more stable recently this has also led to the strengthening of the Aussie Dollar vs the Pound.
We could even see GBPAUD rates slip below 2.10 by Tuesday when the UK announces the eagerly anticipated Inflation Report Hearings which has already been postponed twice this month.
With UK inflation having fallen into negative territory recently if the signs are that it was simply a blip then we could see Sterling strength however if the announcement shows a real concern then expect the Pound to fall vs the Australian Dollar.
There is little data out next week for the Australian economy so the focus will be on events elsewhere including what happens with US Jobless Claims on Wednesday.
If the data is strong then this will put more pressure on the US Federal Reserve to raise interest rates in December and this could see a quick weakening of the Australian Dollar across all major currencies on Wednesday afternoon.
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