Last week was a quiet week for the AUD and this week will provide another, well, at least on the domestic data side of things. This week is full of UK data as there are many high importance releases due for this week. The first will come on Tuesday 6.30pm AEST which will be one of the key influences behind a suggested interest rate hike next month. The Bank of England (BoE) will want figures over 1.7% for them to remain in consideration of the hikes. Last month’s figure was released on a negative note as they fell to 1.6% from 1.7%. This month investors are expecting the release to bring at least 1.7%. If these figures become actual figures we may see a rally of the GBP against the AUD. If they come out more than 1.7% we will see a dramatic increase in the value of the GBP.
The BoE will be releasing their minutes on Wednesday and the results will give us a deeper insight to what exactly the BoE thinks of the economy. There are suggestions that interest rate hikes will be hinted in the records, as the unemployment rate in the UK is beginning to stabilize. This may move the rates come Wednesday night if they have recorded anything that investors do not already know.
Lastly, we have the UK GBP release which is expected to give an unchanged YoY figure of 3.1%. This release will be held with high regard as it will also indicate the productive capacity of the UK economy.
These results will all lead to a conclusion towards the Interest rate hikes hinted by the BoE. Keep an eye out this week if you are looking to trade the GBP, as there is likely to be movement depending on the outcome of the aforementioned UK releases.