The Pound to Australian Dollar exchange rate entered the new week on the front foot but with Federal Reserve (Fed) and Bank of England (BoE) interest rate decisions still looming ahead the risk is of GBP/AUD rising further in a possible upward breakout on the charts over the coming days.
The Australian Dollar was lifted by rising local employment and recovering global markets on Thursday but could fall below 0.60 against the U.S. Dollar for a brief period in the event of any renewed or exacerbated sell-off in the banking sector, according to Commonwealth Bank of Australia research.
The Australian Dollar softened in midweek trade after pulling a previously-rallying Pound lower from one-year highs in prior sessions but the antipodean currency might need the help of its currently-resilient UK counterpart if the correction in GBP/AUD is to be sustained over the days ahead.
The Pound to Australian Dollar exchange rate stalled at one-year-highs before reversing to the downside early in the new week but would risk a deeper corrective setback if clarity emerges around the Australian employment situation or if UK economic developments hamstring Sterling in the days ahead.
AUD undermined by RBA credibility issues: Credit Suisse.
Foreign exchange strategists at a leading Australian bank say the Pound can extend its recent gains against the Australian Dollar.
The Australian Dollar was knocked lower following the Reserve Bank of Australia's signal it was readying to end its interest rate hiking cycle, while data from China also came in weaker than expected.
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