Australian + New Zealand Dollars Slump by Over a Percent versus Pound Sterling; RBS Forecast Current Levels to be Maintained

The latest wholesale markets show:

• The Pound to Australian Dollar exchange rate is a percent higher on a day-to-day basis. GBP/AUD is at 1.7257 at 14:54.
• The Euro to Australian Dollar exchange rate is also a percent higher at 1.4819.
• The Australian Dollar to US Dollar exchange rate is 0.22 pct lower at 0.9091.

Be Aware: The above are spot wholesale quotes; your bank will affix their own discretionary spread to the figures when passing on their retail rate. However, an independent FX provider will guarantee to undercut your bank's offer, thereby delivering you more currency. Please learn more here.

Pound forecasted to peak at 1.76 versus Australian Dollar

The latest exchange rate forecasts from RBS have suggested that the British Pound has yet some way to go before achieving its peak against the Australian Dollar.

RBS analyst Nick Mannion says he sees GBP/AUD at 1.76 by September 2013; from here GBP/AUD is tipped to head lower to 1.72 by December before heading back up to 1.76 in early 2014.

To see the latest Pound Sterling forecasts please see the article and table here.

Reserve Bank of Australia triggers fresh Aus Dollar weakness

The latest bout of Aussie weakness comes courtesy of the Reserve Bank of Australia which has signaled further rate cuts remain a possibility.

Sasha Nugent at CaxtonFX says:

"In the RBA minutes which saw the central bank reduce its benchmark rate to 2.50%, the bank appeared dovish outlining that a potential rate cut is dependent on the improvement of the non-mining sector and business sentiment.

"This statement has worked in the pound’s favour with the GBPAUD rate currently at 1.7315. We see the GBP looking to maintain this strength over the course of the day."

Nevertheless, there are some concerns that the British Pound may have overshot its mark, as a note from Commonwealth Foreign Exchange says:

"The pound’s impressive rise over recent weeks as a result of a string of strong U.K. economic data, could be somewhat overdone, especially if British monetary officials begin to express discontent with the strength of the currency."

New Zealand Dollar slumps in sympathy with Aussie, NZ property bubble concerns

Meanwhile, the GBP/NZD is 1.21 pct higher than seen at last night's close at 1.9629 thanks to a renewed selling pressures witnessed by the NZD.

The Australian dollar's weakness will be partly to blame, as are fears ahead of tomorrows FOMC Minutes, but there are also some domestic weights:

Nugent says:

"The Reserve Bank of New Zealand will impose limitations on low-deposit households in order to protect the financial system from a housing bubble. The RBNZ governor Wheeler expressed his concern over the banking system’s exposure to any unexpected collapse in house prices.

"This news has seen the GBPNZD shoot up this morning, with the rate at 1.9603 at present. We expect this high to retract slightly but still settle above yesterday’s close towards 1.95."