AUD/GBP Outlook:
The AUD/GBP rate is currently above its recent average and near recent highs, suggesting a slightly positive outlook. Ongoing fundamental support continues to favor the Australian dollar.
Key drivers:
- Rate gap: The Reserve Bank of Australia is likely to raise interest rates further, while the Bank of England signals a softer approach, creating a favorable gap for the AUD.
- Risk/commodities: Rising commodity prices, especially gold, are boosting Australia's economic outlook, providing momentum for the Aussie.
- One macro factor: Australia's consumer price index data will be watched closely—if it shows strong inflation, it could bolster AUD further.
Range:
Expect the AUD/GBP to drift within its recent range, possibly testing the upper levels if positive data emerges.
What could change it:
- Upside risk: A stronger-than-expected inflation report from Australia could lift the AUD further.
- Downside risk: A significant deterioration in global risk appetite due to political or economic instability could weigh on the AUD.
