The Pound Australian Dollar (GBP/AUD) exchange rate wavered in a narrow range on Monday as a mixed market mood and lack of data provided investors with little trading impetus.
Pound to Australian Dollar (GBP/AUD): 2.01477 (+0.21%)
Pound to Dollar (GBP/USD): 1.34316 (-0.05%)
Australian Dollar to Dollar (AUD/USD): 0.66666 (-0.26%)
DAILY RECAP:
The Australian Dollar (AUD) was rangebound on Monday as the first full week of trading in 2026 got off to a calm start.
The subdued conditions came amid a muted market reaction to the US invasion of Venezuela and the capture of Nicolas Maduro over the weekend.
While the operation was a geopolitical shock with the potential to dent risk appetite depending on how events unfold, investors appeared somewhat relieved that it concluded swiftly, reducing the risk of a more protracted conflict.
Meanwhile, the Pound (GBP) was also flat on Monday as the absence of UK economic data left Sterling struggling to find a clear direction.
With no major domestic releases or political developments to guide positioning, GBP investors largely sat on the sidelines, leaving the currency confined to a narrow trading range.
Near-Term GBP/AUD Forecast: Final Services PMIs in Focus
Looking ahead, the only data of note on Tuesday will be the UK’s final services PMI for December. The preliminary survey showed an acceleration in service-sector activity last month, which could support the Pound if confirmed.
However, after the UK’s final manufacturing PMI was revised lower last week, there is a risk that a downward revision to services could undermine Sterling.
For the ‘Aussie’, Australia’s final services PMI is due overnight. Confirmation of a slowdown in activity could weigh on AUD.
Elsewhere, market risk appetite may remain a key driver. If geopolitical concerns intensify and cloud sentiment, the risk-sensitive Australian Dollar could come under pressure, potentially allowing Sterling to edge higher.
