Good morning all,
I hope you had a great weekend?
The Australian had a positive start to the week rising above 0.6300 against the British Pound. The Aussie rose to 0.6340 against the Pound after the British Bankers Association revealed more Britons struggled for mortgages than expected. The September figures showed the lowest net mortgage lending period in almost ten years. Australian producer prices increased at a faster pace than expected, jumping to 1.3% from the previous quarter’s 0.3%, raising expectations for a rate hike by the Australian Reserve Bank next week. The New Zealand Dollar rode the wave of positive investor sentiment breaking 0.4800 against the Sterling.
Unexpectedly high preliminary GDP data from the UK saw the Pound body slam its opponents, with the Euro toppling from 0.8881 to 0.8726 against the Pound. The Euro has remained around this level for the remainder of the week. The preliminary GDP figures for the UK printed 0.8%, doubling market expectations of 0.4%. This could not have come at a worse time for the Aussie whose inflation figures missed estimates reducing the likelihood of an interest rate increase next month. The Australian Dollar fell to as low as 0.6118 against the Pound where it has found some support. Meanwhile the Kiwi has been unable to lift itself off the 0.4730 mark versus the British Pound.
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Have a great week.