What are GBP to AUD forecasts?
The GBP/AUD exchange rate has seen an upward trend lately, with the pound reaching an 11-month high against the Australian dollar. This can be attributed to various factors, including double-digit inflation figures in the UK at 10.1% and the pound's increased volatility due to Brexit-related uncertainties. GBP/USD has been trading between a range of US$1.2350 to US$1.2530, managing to reach 11-month highs above US$1.2560. Market expectations for the Bank of England (BoE) to continue its contractionary monetary policy stance and the UK's labour shortage have also contributed to the pound's strength.
The Australian Dollar (AUD), on the other hand, faced challenges at the start of the week but managed to rebound later on without a clear catalyst. The AUD is a risk-sensitive currency and changes in commodity prices, trade policies, and political developments can significantly impact its value. Economists participating in the Australian Financial Review’s survey predict that the AUD will likely be at 0.71 USD by the end of 2023. Over the last three months, the GBP to AUD exchange rate has remained 2.6% above its average at 1.8951 and traded in a stable range of 1.7749 to 1.9006. The ongoing contraction in manufacturing activity could hurt the AUD, while a strong services sector may limit losses. The market view indicates that the GBP/AUD exchange rate will continue to fluctuate, influenced by economic data releases, political events and central bank policies.