The Australian Dollar is having a rough week as it is down 2.96% against the US Dollar and 2.56% against the British Pound. This comes as no surprise considering Australia has been unable to increase wages during these times of inflation.
Coming up this week, Australia is going to release its Retail Sales data and we’re expecting it to reveal an increase in consumer confidence. Retail Sales were previously 0% and it is expected to increase to 0.1%. However, we are hopeful the numbers could be much higher.
Moreover, the US is all set to release its GDP data this upcoming week and surprisingly the numbers are expected to remain unchanged at 1.3%. This comes despite the recent revelation that the US imports billions of dollars worth of goods every year.
Finally, the Bank of Canada will reveal its Consumer Price Index for the month.
Unfortunately, the expectations are for a significant drop from 4.1% to 3.7% which reveals poor purchasing power in the country. Canada is likely suffering the brunt of the inflation at the moment.
This past week has been a loss for the Aussie against the Pound as the latter gained the upper hand by 2.56%. The GBPAUD pair has consistently been rising to the top since the market opened on Monday. The numbers jumped from 1.8622 to close at 1.9049 this past week.
The Bank of England released its interest rate decision for the month which caught everyone by surprise. The bank increased rates by 50 basis points from 4.5% to 5.0%. This comes as a surprise, considering they’ve only been doing 25-point increments thus far.
UK’s Consumer Price Index also came out this past week which revealed that purchasing power in the region continues to hold. This is surprising, considering inflation has only gotten worse. Core CPI data remains unchanged at 8.7% despite expectations for it to drop to 8.4%.
The Australian Dollar once again finds itself in the red zone against the Canadian dollar as the pair battled it out this past week but the Loonie has consistently held the upper hand. The AUDCAD pair was down by 3.32% this past week.
Canada recently released its Retail Sales data which reveals a significant jump to the green zone and an increase in consumer confidence. The numbers were previously -1.5% and analysts expected it to increase slightly to 0.2%. However, Canada went well beyond and touched 1.1%.
Australia depends on China’s economy to perform well in order for its own economy to stay on the positive side as well. However, the People’s Bank of China recently cut its interest rates which is bad for the Chinese economy and subsequently the Australian economy as well.