Forecasts for GBP to AUD
The GBP to AUD exchange rate has found itself under pressure amid prevalent economic concerns for the UK. Despite the National Institute of Economic and Social Research (NIESR) providing optimistic growth forecasts, analysts suggest that the pound (GBP) remains weighed down by uncertainties surrounding the UK's economic performance. With the anticipation surrounding the release of the latest GDP figures and forecasts indicating a potential contraction, FX analysts predict that Sterling could continue to decline. Current trading levels around 1.9835 place the GBP near its three-month average, suggesting limited volatility within a stable range of 1.9252 to 2.0239.
On the flip side, the Australian dollar (AUD) has also struggled recently as market sentiment soured, particularly following negative shifts influenced by US inflation data. The outlook for the AUD remains closely tied to external factors such as investor risk appetite and China's economic performance, given its significant trading relationship with Australia. Economists predict that the potential for tighter tariffs under a renewed Trump presidency could dampen this relationship further. Nevertheless, recent strong trade data from China, alongside potential fiscal stimulus, might provide some upward momentum for the AUD. While FX analysts expect a resistive cap on gains, they note that commodity demand could elevate the AUD back towards the USD0.68-0.69 range if conditions stabilize. As such, the GBP/AUD exchange rate will likely remain sensitive to both countries' macroeconomic data and geopolitical developments, reflecting a balancing act between the GBP's domestic struggles and the AUD's fluctuations tethered to external influences.
