From ANZ's 'Australian Strategy Weekly' published today

  • AUD/GBP looks like it is set to weaken on a tactical basis
  • Recent data from the UK has consistently surprised on the upside and after surprising the market on the dovish side the BoE is now unlikely to deliver further measures for some time
  • This, together with the extremely oversold nature of the GBP, makes it a big catch-up candidate in the event of any USD weakening trend
  • Similarly, while we do not expect data disappointments to drive the AUD/USD lower in the short term, it may well impact on the crosses, and this too can drive downside in AUD/GBP