The Pound to Australian Dollar (GBP/AUD) exchange rate could retest 2.0 this week.
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The Australian Dollar rose and RBA rate cut expectations retreated following the release of labour market data.
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The Australian Dollar's selloff accelerated in midweek trade amidst talk of Chinese Yuan devaluation and more 'dovish' commentary from the Reserve Bank of Australia (RBA).
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The Australian Dollar dropped in value after the wind changed direction at the Reserve Bank of Australia (RBA). Chinese stimulus promises are limiting downside.
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There has been a definite pick- up in upside momentum in GBP/AUD of late. However, a pullback is likely during the next couple of days, with the focus turning to the RBA decision.
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Despite being undervalued, the Australian Dollar should fall "materially further" in 2025. But near-term, the exchange rate could find some support.
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The Australian Dollar is under pressure amidst political chaos in South Korea and a surprisingly weak domestic GDP print.
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