GBP/AUD: Sterling To Australian Dollar Exchange Rate Rebounds On Brexit Progress

British Pound Kicks Back Against Australian Dollar Gains Ahead of Employment, Retail Sales and Brexit Headlines

Between last night’s Australian Wage Price Index release and this morning’s lower than expected UK CPI the Sterling has certainly been suffering against the Australian Dollar in today’s sessions.

This afternoon’s session has brought some reprieve for the Pound on the back of news indicating that Brexit might be one step closer to finalisation. Irish PM Leo Varadkar has announced an EU Summit is due to take place on 25th November with completing a Brexit deal being the agenda.

At the time of writing the Sterling to Australian Dollar is now trading at above 1.798.

The headlines are coming thick and fast now and may overshadow tomorrow’s (12.30am) Australian Employment and Unemployment figures. Expectations are for an increase in employment to 19.9k from last month’s 5.6k. However, unemployment is also expected to rise (5% to 5.1%).

Later in the morning we have the UK Retail Sales (monthly) release which is forecast to increase from -0.8% to a marginally positive 0.1%.

Whilst normally the employment and retail figures could encourage weighty moves for the GBP/AUD exchange rate, under the circumstances with Brexit all-dominating it’s likely the effect will be more muted than usual.