Bearish
GBP/AUD hits three-month low amid risk-on sentiment and rising RBA rate hike expectations.
Over the past 24 hours, GBP/AUD has declined to a three-month low, trading at AU$1.8797, influenced by a global risk-on mood and heightened expectations of an Australian interest rate hike. The Australian economy's robust performance, with a 0.4% growth in Q2 and a 2.1% annual increase, alongside a steady core inflation rate of 3.6%, has bolstered the Australian Dollar. Market pricing now reflects a two-thirds probability of the Reserve Bank of Australia raising rates in September, with a full 25 basis point hike anticipated by November.
Key points
- GBP/AUD reaches three-month low amid risk-on sentiment.
- Rising Australian rate hike expectations pressure GBP/AUD.
- UK's S&P Global Construction PMI for August reported at 44.30.
- UK's new passenger car registrations in August totaled 94,236 units.
Sources
AI-generated from public news sources. Not financial advice.
