The Pound to Australian dollar exchange rate fell heavily on Thursday as hawkish remarks from the Reserve Bank of Australia Governor Michelle Bullock helped the antipodean currency to outperform, but the pair has likely reached a near-term bottom and may even have scope to recover as far as 1.97 in the days ahead.

Australian dollar trading has surged following the unwinding of popular carry trades over recent sessions, making the antipodean currency the fifth most traded on the interbank market, according to Goldman Sachs data.

The Pound to Australian dollar exchange rate has leapt to post-pandemic highs in recent trade and the author’s model suggests it’s likely to remain buoyant above the nearby 1.96 handle over the coming days.

The Australian Dollar is lower against its major peers after Australia's quarterly inflation figures eased pressure on the Reserve Bank of Australia (RBA) to raise interest rates again.