In contrast to last week, the Australian Dollar has soared against most of its peers recently, owing to the detail of recent Reserve Bank of Australia (RBA) meeting minutes.
The Pound has managed to hold its ground in most cases, although it has been harmed by national inflation rate stats.
The Australian Dollar has made sizable gains against all of its peers recently, thanks to the latest minutes covering the Reserve Bank of Australia (RBA) May meeting minutes.
In a historic moment, the RBA decided to cut the national interest rate in May after a year of inactivity, although the recently-released minutes have revealed that there was significant hesitancy from the central bank about committing to the decision.
In response to the news, Capital Economics Economist Paul Dales predicted that another interest rate cut was still incoming, saying:
‘The markets may conclude that the minutes of the RBA’s May policy meeting imply that the Bank is less likely to follow the recent cut in interest rates to 1.75% with another reduction to 1.5%. We disagree and believe that rates will be cut to 1.5% per cent at the August meeting’.
Of late, the ‘Aussie’ has recorded advances of 0.4% against the Pound Sterling (AUD/GBP), 0.5% against the US Dollar (AUD/USD) and 0.9% against the Canadian Dollar (AUD/CAD).
The UK currency has advanced against a number of its peers recently, although these have been tempered by sizable losses elsewhere.
Gains have consisted of 0.3% against the Canadian Dollar (GBP/CAD) and 0.4% against the Thai Baht (GBP/THB), although losses have been made up of -0.5% against the Australian Dollar (GBP/AUD) and -0.2% against the New Zealand Dollar (GBP/NZD).
The news triggering this mixed movement for the Pound has concerned the national inflation rate for April, which has fallen on the month and the year in both the core and non-core variants.
While the Treasury attempted to put a positive spin on the news by citing rising wages, data tables proved otherwise and some economists put their expectations for the next Bank of England (BoE) interest rate hike all the way back to 2019.
The next ecostats which could move the AUD/GBP pairing will come from Australia first, in the form of a speech from RBA Assistant Governor Guy Debelle and the Westpac leading index for April.
Elsewhere, UK contributions will consist of the claims, earnings and unemployment results for April and March. Forecasts have been for a stagnation of unemployment, a slowdown in the number of claims made and mixed outcomes for the average weekly and weekly excluding bonus fields for earnings.
The Australian Dollar to Pound Sterling (AUD/GBP) exchange rate has been trending in the region of 0.5072 and the Pound Sterling to Australian Dollar (GBP/AUD) exchange rate has been trending in the region of 1.9722 recently.
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