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Sean Callow, Research Analyst at Westpac, points out that the Australian dollar is roughly in the middle of its Q2 ranges against sterling and looking forward, AUD should find support from the RBA’s optimistic outlook and broadly resilient commodity prices.

Key Quotes

“AUD is also probably already pricing in ongoing US-China trade tensions.”

“But AUD gains against the pound should be constrained by the BoE’s swing back towards planning a rate rise, at least so long as UK data holds up ahead of the 2 August MPC meeting.”

“This suggests multi-week trade is constrained inside a rough range of AUD/GBP 0.5450 (GBP/AUD 1.83) to 0.57 or 1.75.”