GBP/USD: Pound Steadies As No Deal Brexit Risk Subsides

The Australian dollar US dollar exchange rate finished trading on Tuesday 0.1% higher, as trade deal optimism and strong US data meant the two currencies were relatively evenly matched. The pair is holding steady again in early trade on Wednesday around US$0.69 as investors await fresh catalysts.

Despite some disappointing Australian retail sales data at the start of the week, the Aussie dollar has held up well so far this week. The Reserve Bank of Australia unexpectedly adopted a more neutral stance at their meeting, indicating that a December rate cut was unlikely. The RBA have already cut interest rates three times this year, taking interest rates to a record low of 0.75%.

The Australian dollar has advanced as the prospect of a December cut evaporates and as optimism grows over a US — China trade deal.

Signs that the two powers, China and the US are closing on a phase one trade deal, that could be signed in the coming weeks has boosted the Australian dollar. This is because China is Australia’s primary trading partner. A US — Sino trade deal would boost the Chinese economy, which would also be beneficial for the Australian economy and therefore the Australian dollar.

Looking ahead the Australian trade balance will be in focus. Analysts are expecting this to have decreased to AUD$51000 million in September compared to AUD$5926 million in August.

Dollar Holds Steady, Fed Speakers Up Next

Following a strong previous session versus its peers, the US dollar was holding ground on Wednesday. Trade optimism combined with strong US service sector data boosted the dollar on Tuesday. Today there are fewer forces driving the greenback.

Investors are waiting for further details over the potential signing of a US — Sino trade deal. Until a location and a date are confirmed for the signing some disappointment could seep into the fx markets. US officials are debating whether to cut the trade tariffs applied to Chinese goods in September as a concession to get a trade deal agreed. Any news regarding this could create some volatility in the dollar.

Today there is no high impacting US economic data for investors to digest. Instead attention will remain on trade headlines and Federal Reserve policy maker speeches later today.


What do these figures mean?
When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.

For example, it could be written:

1 USD = 0.6784 AUD

Here, $1 is equivalent to approximately A$0.67. This specifically measures the US dollar’s worth against the Australian dollar. If the Aussie dollar amount increases in this pairing, it’s positive for the US dollar.

Or, if you were looking at it the other way around:

1 AUD = 1.4739 USD

In this example, A$1 is equivalent to approximately $1.47. This measures the Australian dollar’s worth versus the US Dollar. If the US dollar number gets larger, it’s good news for the Aussie dollar. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views