Pound to Australian Dollar Rate Caught Between Rock and Hard Place

The Australian and New Zealand Dollars remain enthralled by developments in China, where authorities are adapting their policy response to rising Covid cases and an increasingly uncompliant population.

AUD is an obvious casualty of fresh market concerns centred over China's response to the Covid pandemic, and further losses are likely say institutional currency analysts we follow.

GBP/AUD has been edging higher for a number of weeks and could extend the advance if global sentiment linked to China deteriorates further.

The Pound to Australian Dollar exchange rate has benefited from a corrective setback in AUD/USD that could keep Sterling buoyant above 1.7750 this week as attention turns to monetary policy commentary from the Reserve Bank of Australia (RBA), Federal Reserve (Fed) and Bank of England (BoE).

Newswires are reporting Beijing might be heading for a Covid lockdown, raising the prospect for near-term Australian Dollar weakness to extend.

Wages rise faster than expected, offering near-term AUD support.