A strong Australian employment report and the tailwinds of a generous 50 basis point cut from the Federal Reserve have boosted the Aussie Dollar and will press GBP/AUD towards range lows.

We forecast the Pound to struggle against the Australian Dollar in the week ahead owing to the strong likelihood that the Federal Reserve will cut interest rates by 50 basis points.

The Australian Dollar reached a one-week high following improved investor sentiment that followed a reboot in expectations for an outsized 50 basis point interest rate cut from the Federal Reserve.

The Australian Dollar is predicted to strengthen against the Euro, Pound and U.S. Dollar over the next few months and through 2025, according to a major Australian lender.