Over the past month, GBP/AUD has ranged mostly from 1.73 to 1.79. Economists at Westpac expect the pair to edge lower towards 1.72 over the coming months on the back of aggressive Reserve Bank of Australia (RBA) tightening. 

GBP/AUD to spend some time above 1.78

“Markets are pricing in aggressive RBA tightening, to a cash rate above 2.5% by end-2022. The surge in AU yields has boosted its pickup versus GBP to multi-year highs. This yield support should weigh on GBP/AUD to around 1.72 in Q3 and beyond.”

“Near-term, the poor global risk mood including concern over Chinese growth suggests the pair spends some time above 1.78.”