Tomorrow in the early hours Australia will release the latest unemployment figures which are expected to stay the same as last month. The Australian economy has been growing recently with a resurgence in the commodity prices, coupled with positive domestic figures.
The Aussie is near to its post-Brexit strength which means it is sitting near to a 3-year high. The next few months the main focus will be on the US Federal Reserve as future interest rate decisions look likely to determine the Aussies fate. If there was to be several Interest rate hikes in the US the Aussie is likely to weaken as investors withdraw riskier investments. Previously when interest rates in America were at a low before the rate hike in 2016 the Aussie strengthened, now as we move towards several hikes the money may start to leave the AUD.
Sterling gains remain
Yesterday’s speech from Prime Minister Theresa May caused a rally for Sterling and the gains have been upheld. The Supreme Court will reveal their decision on the High Court Order next Tuesday at 9.30am and I would expect this to enforce May to let the House of Commons vote. The Prime Minister may have already taken the sting out of the Supreme Court by suggesting she would allow both the House of Lords and Commons to vote. Either way the enforcement of a vote could well help Sterling to strengthen further.
In the short term the gains for Sterling are positive, however whilst there is still so much uncertainty surrounding Brexit its unlikely there will be any major gains for Sterling in the near future.