GBP/AUD 2026-2027 forecast: Median, range and upside/downside risks based on projections from 20+ investment banks and FX analysts.View forecasts
The Pound to Australian Dollar (GBP/AUD) exchange rate slipped back towards the low 1.92s after striking a fresh 16-month low overnight, as hawkish Reserve Bank of Australia rhetoric reinforced expectations that Australian interest rates may remain higher for longer.
Pound to Australian Dollar (GBP/AUD): 1.91551 (-0.61%)
Pound to Dollar (GBP/USD): 1.36499 (+0.13%)
Australian Dollar to Dollar (AUD/USD): 0.7126 (+0.74%)
DAILY RECAP:
The Australian Dollar (AUD) rallied during the Asian session after Reserve Bank of Australia Deputy Governor Andrew Hauser struck a firm tone on policy.
Speaking in Sydney, Hauser reiterated that inflation remains too high and that capacity constraints across the economy persist.
He stressed that the RBA is prepared to “do what is needed” to return inflation to the 2–3% target band, reinforcing expectations that monetary policy may remain tight and that further rate increases cannot be ruled out.
The hawkish rhetoric pushed the ‘Aussie’ higher, sending GBP/AUD to its weakest level in 16 months before gains faded slightly as markets turned cautious ahead of key US data.
The Pound (GBP), meanwhile, attempted a modest recovery from recent lows.
The rebound appeared largely technical in nature, with some investors stepping in after recent Sterling weakness.
However, upside potential remained constrained as political uncertainty surrounding Prime Minister Keir Starmer continued to linger, limiting broader confidence in the UK currency.
Near-Term GBP/AUD Forecast: UK GDP and RBA Signals in Focus
Looking ahead, attention turns to the UK’s latest GDP figures.
Preliminary fourth-quarter data is expected to show growth ticking up from 0.1% to 0.2%. Even a modest acceleration could help ease immediate pressure on the Bank of England to cut rates and offer Sterling some support.
For the Australian Dollar, focus will shift to remarks from RBA Chief Economist Sarah Hunter.
If she echoes the hawkish tone struck by Hauser, AUD could extend its gains. However, any softening in language or a deterioration in global risk sentiment may limit further upside for the ‘Aussie’.
