The Aussie dollar retreated from near the top end of its recent range against the greenback ahead of a central bank decision later in the day, with traders split on the odds of a quarter point or half point interest rate rise.
British Prime Minister Liz Truss was forced to back down from the plan on Monday amid a party rebellion. On Monday, the Institute for Supply Management’s survey showed US manufacturing activity was the slowest in nearly 2-1/2 years in September as new orders contracted, with a measure of inflation at the factory gate decelerating for a sixth consecutive month.
He also noted “global recession risks can push GBP down significantly” and “the weak UK economic outlook will keep GBP under pressure” over the medium-term.
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