Pound-Australian Dollar Exchange Rate Forecast to Test 1.7927

The British Pound looks destined to extend a multi-week decline in value against the Australian Dollar, with an entrenched downtrend in the GBP/AUD exchange rate potentially targeting a move to 1.76 in coming weeks according to recent analysis.

The Australian Dollar is on the charge once more as markets step into a new week and month, with a continued strengthening of iron ore prices being cited as a key catalyst for the gains.

The Pound-to-Australian Dollar rate downtrend has waned this week but remains intact while the underperforming British currency is unlikely to be spared from further losses by Chinese aggression toward Australia and a rise in USD/CNH due to the now-broken relationship between these currencies. 

The Australian Dollar suffered a decline over the course of the past 24 hours amidst a softening of broader investor sentiment and growing signs China is looking to tighten the screws on Australia over demands that the origins of the covid-19 outbreak are fully investigated.

The Australian Dollar turned sharply lower against the Pound, Euro and U.S. Dollar as well as the majority of its G10 peers amidst signs China was looking to ramp up economic pressure on Australia.

The British Pound's downtrend against the Australian Dollar looks set to remain in place for the foreseeable future says a noted foreign exchange analyst we follow.

The Pound's recent recovery against the Australian Dollar could run further, according to technical studies of the GBP/AUD exchange rate with confirm potential for a rebound to take shape.

The Australian Dollar reversed some of its recent gains against the Pound, Euro and U.S. Dollar ahead of the weekend in response to a broad deterioration in market sentiment, as investors considered rising geopolitical tensions between the U.S. and China.