Earlier this month the Australian dollar hit highs against the British pound since December 2018. The cooler global risk mood in recent days has produced AUD underperformance but ultra-loose central bank policy settings should limit the duration of such pullbacks. Economists at Westpac expect bounces on the GBP/AUD pair to reach the 1.82 mark, however, the long-term forecast is 1.7850. Key quotes “The UK economy fell much more steeply than Australia’s in the peak pandemic lockdown period of Q2, -21.7%yr versus -6.3%yr in Australia. Since then Australia’s growth pulse has been modest, slowed by Victoria’s second lockdown. The UK has rebounded sharply but the new restrictions announced by the government this week will slow the recovery.” “Both the RBA and BoE are pursuing very expansionary monetary policy and both are open to further easing. Australia’s C/A position (surplus) is much more supportive than the UK’s, helping AUD against GBP. Ongoing unease over UK-EU trade negotiations also hang over the pound.” “Our baseline scenario over Q4 is for both AUD and GBP to trend higher against a vulnerable US dollar. Bouts of equity volatility driven by e.g. US election uncertainty should produce bounces in GBP/AUD back above 1.8200 but our central forecast multi-week/month is 1.7850.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD re-takes 1.17 after German Preliminary Manufacturing PMI beats estimates with 56.6 in Sept FX Street 2 years Earlier this month the Australian dollar hit highs against the British pound since December 2018. The cooler global risk mood in recent days has produced AUD underperformance but ultra-loose central bank policy settings should limit the duration of such pullbacks. Economists at Westpac expect bounces on the GBP/AUD pair to reach the 1.82 mark, however, the long-term forecast is 1.7850. Key quotes “The UK economy fell much more steeply than Australia’s in the peak pandemic lockdown period of Q2, -21.7%yr versus -6.3%yr in Australia. Since then Australia’s growth pulse has been modest, slowed by Victoria’s second lockdown. The UK has… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.