With a fresh week ahead in the trading markets, the performances of the GBP and AUD have been highlighted and their outlooks cast. The GBP had been volatile lately and continues in this trend up until the General Election on the 12th December, but vulnerability is proposed ahead of finalised PMI’s for the UK. Meanwhile, the AUD has been in a troublesome state for a number of weeks, particularly with the breakdown of the US-China trade talks. But rumours suggest that the AUD could rally this week following the release of GDP data.
GDP Data Could Give AUD a Much Needed Lift in Exchange Rates
The AUD has faced challenges over the past few weeks, more recently US President Donald Trump recently caused upset to the US-China trade talks through his support to the protests in Hong Kong. The Chinese noted that the US should avoid getting involved in the conflict, but the President went against this wish – causing a breakdown in peace between the two countries.
However, the AUD’s luck may be on the rise now as expected GDP data is set be released this week. Predictions for this data have been positively rated and should this be the case then the AUD will likely receive a much-needed boost to it’s strength in the trading world as well as edging over competitors like the GBP.
GBP Could Fall Ahead of PMI Data
Economists are expecting the GBP to drop following the release of the PMI data for the UK. Investors are unlikely to see significant revisions being made to any of the three PMIs with the data predicted to shine a light on the widespread slowdown of the UK economy. But should the opposite be true, and the PMIs show revision, the GBP could rally from this and edge over its competitors. However, even so, the volatility and uncertainty of the upcoming election is likely to weigh heavy on the GBP/AUD rate over the coming week, regardless of positive economy data.
AUD May Receive Further Boost Following Solid Manufacturing Growth
With the GBP at an uncertain stage, the AUD could edge over the GBP with a duo of the GDP data as well as November’s manufacturing PMIs which are set to be handed out this week. Previous data suggested that the PMIs showed solid growth, and if this trend continues the Aussie Dollar will no doubt accelerate in strength.
Feel free to email me, Dayle Littlejohn if you would like to know more on the factors affecting the AUD/GBP pairing or have an upcoming currency transfer [email protected].