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The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

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The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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GBPAUD Could Retrench Further with GDP and Consumer Data

The GBP/AUD exchange rate slumped last week as the 1.8000 level proved stubborn for the pair.

Data ahead this week can see a further recovery in the Australian dollar.

GBPAUD – Weekly Chart

gbpaud

The first release will be Westpac consumer confidence data, which will be released ahead of the Tuesday session. Friday will bring the latest September GDP data for the UK economy.

In a separate report on Australian consumer behaviour, the index was lower for a fifth straight week, which may be bearish for the Westpac number.

The Reserve Bank of Australia will watch the figures closely this week, and there is also an Australian Bureau of Statistics household spending indicator on Tuesday. The weekly surveys from ANZ and Roy Morgan will both come on Tuesday as well.

Aussie consumers have to tighten their belts after an aggressive reversal in policy from the RBA, which led to aggressive rate hikes.

Friday’s GDP data from the UK economy is expected to show a further deterioration in growth to -0.5% for September, down from -0.3%. The pound sterling could suffer if the number comes in worse than expected.

The latest economic growth figures will reveal whether the UK is on the verge of a recession. The data published by the Office for National Statistics on Friday has economists widely expecting the economy to have contracted in the three months to September. If that is the case, it would put the UK on the brink of a formal recession should growth fail to recover in the year's final three months.

The new prime minister, Rishi Sunak, has an upcoming budget for the British economy and said: "We are going to deliver growth."

Mr. Sunak added: "We are going to do it sustainably, built on the foundations of strong public finances." We got a glimpse of what happens when you get that wrong.

"I care about getting borrowing under control, as it’s going to make mortgages more affordable for your readers. "I am going to fix those problems."

The budget can be a driver of the British pound, but after the previous problems with the bond market, Sunak’s budget is unlikely to rock the boat on areas such as tax cuts.

The weekly chart shows weakness at the 1.8000 level for the GBPAUD, and traders should use that for the week ahead.

Last Updated: 07/11/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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