The Pound to Australian Dollar (GBP/AUD) exchange rate traded in a narrow range on Tuesday as markets digested the minutes from the Reserve Bank of Australia’s (RBA) latest policy meeting.
Pound to Australian Dollar (GBP/AUD): 1.92261 (-0.08%)
Pound to Dollar (GBP/USD): 1.31854 (+0.1%)
Australian Dollar to Dollar (AUD/USD): 0.68581 (+0.18%)
DAILY RECAP:
The Australian dollar (AUD) wavered through Tuesday’s Asian trading session, following the publication of the minutes from the Reserve Bank of Australia’s March policy meeting.
While the central bank opted to tighten monetary policy earlier this month, the minutes reiterated that the decision was far from unanimous, with some members questioning the timing of the hike, particularly amid signs of slowing household consumption.
While markets currently price in a 60% chance for another rate hike in May, the minutes highlight how the path for monetary policy remains highly uncertain.
This limited the Australian Dollar’s upside potential on Tuesday, despite a broadly risk-positive mood, following a Wall Street Journal report that US President Donald Trump is ready to end the war with Iran, even without securing the reopening of the Strait of Hormuz.
Meanwhile, the Pound (GBP) was flat on Tuesday, following the release of the UK’s finalised GDP figures for the last quarter of 2025.
Data published by the Office for National Statistics (ONS) confirmed the UK economy expanded by just 0.1% in the October–December period, matching the preliminary estimate and underscoring the sluggish pace of growth at the end of the year.
The weak GDP figures suggest the UK economy entered 2026 with very little momentum, which will further dampen growth expectations amid the ongoing crisis in the Middle East and the inflationary risks it poses.
GBP/AUD Forecast: Slowing Chinese Factory Activity to Weigh on the ‘Aussie’?
Looking ahead, the next key catalyst for the Pound Australian Dollar exchange rate will be the publication of China’s latest manufacturing PMI.
As the primary market for Australian raw material exports, any slowdown in China’s factory sector this month is likely to reflect negatively on the ‘Aussie’.
Otherwise, both GBP and AUD will continue to be influenced by events in the Middle East, with the Pound particularly sensitive to the conflict’s ongoing impact on energy prices, and the Australian Dollar linked to wider market sentiment.
