AUD/GBP: Headwinds to persist for AUD near term - Westpac

Sandeep Kanihama FXStreet Contributor

Sean Callow, Research Analyst at Westpac, points out that the Aussie has fallen more than 4% against the British pound since late August on a combination of greater optimism over Brexit negotiations and AUD negatives such as US-China trade tensions and Australian political turmoil.

Key Quotes

“With the RBA firmly on hold, backed by headline GDP growth above 3% and commodity prices grinding higher, AUD has the scope for recovery on crosses in coming months. But in the next few weeks, AUD’s apparent role as proxy for US-China trade relations seems likely to cap rallies. Risks look skewed for a break below AUD/GBP 0.54 or GBP/AUD above 1.85.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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