Last night the UK released their manufacturing data for the month of November. The figures came in slightly above last months results, also much better than what the market was expecting. The figure pushed the GBP slightly higher against AUD.
This week is a very important week for central bank statements and key rate decisions. Today, Governor of The Reserve Bank of Australia will make an announcement at 1.30 AEST. This month’s announcement is particularly important as it will be the last announcement until February 2015.
Stevens’ is expected to focus on four main areas; the AUD, the Inflation Rate, Unemployment, and Monetary Policy. Last week RBA Deputy Governor Lowe made an announcement regarding the future monetary stance in Australia. He was quite bearish against the AUD; which is quite typical of Lowe.
Lowe hinted at Interest rate cuts, also saying that Commodity prices in Australia have been struggling over the last few months. The comments pushed the AUD off a cliff and it has slowly been tumbling down the mountain ever since then. Stevens’ comments are often in line with his colleagues; therefore today’s final Interest rate announcement for 2014 could pack a punch and push the AUD even further.
Head of the Bank of England, Mark Carney will be making the announcement on the key monetary policy changes in the UK. The announcement may continue the GBP dominance that has been experienced recently. This is because interest rate hikes have been a strong topic.
The overall outlook for the AUDGBP exchange rate is not looking good currently for holders of AUD; however, the next three days do have the potential to turn the tables around.