GBP/AUD to stay above 1.93 into mid-year, drifting lower to 1.88/89 by year-end – Westpac

Economists at Westpac expect GBP/AUD to spend considerable time above 1.93. But their baseline forecast for end-2022 is GBP/AUD at 1.88-1.89.

Next few weeks should be unsettling for risk appetite and thus for the aussie

“The next few weeks into the March FOMC meeting should be unsettling for risk appetite and thus for AUD.”

“We see GBP/AUD spending considerable time above 1.93 and probably remaining fairly bid into mid-year. But our baseline forecast for end-2022 is 1.88-1.89, with Australian wages and inflation likely to be justifying RBA tightening into 2023.”