Pound-to-Australian-Dollar Rate in the Week Ahead: Relief Could soon be at Hand

The GBP/AUD rate has been falling within a steep downtrend ever since peaking at the 1.87 October highs but the pair is now approaching a major area of support, where it could steady.

The Australian Dollar shifted onto its back foot in the final session of the week after failing to hold an earlier two-month high, but the 2019 year ahead will be kinder to the currency than 2018 according to analysts at Goldman Sachs.

The Pound-to-Australian-Dollar rate is close to bottoming out following this week's Brexit-induced plunge but any recovery will first require Brexiteering British politicians to abandon their rebellion, according to strategists at Westpac.

The Australian Dollar swept higher against all rivals Thursday after official data showed the Antipodean labour market going from strength-to-strength in October, but some analysts are warning that things might already be about as good as they are likely to get for the Aussie currency. 

The Australian Dollar handed back earlier gains Wednesday despite official data showing Aussie wage growth picking up a touch during the third-quarter, while industrial figures from China cast a shadow over the world's second largest economy.

GBP/AUD likely to continue downtrend on technical basis and negative Brexit headlines but a break of key levels needed for confirmation.

The Australian Dollar could remain on its front foot into year-end, according to Commonwealth Bank of Australia forecasts, which suggest the Pound-to-Australian-Dollar rate could fall by nearly 3% over the next two months. 

The Australian Dollar took a breather Friday as markets digested fresh forecasts from the Reserve Bank of Australia, but analysts say the Antipodean currency's recovery still has further to run.