GBP/AUD Exchange Rate Steadies as Australian Inflation Fails to Boost RBA Hike Bets

The Pound-Australian Dollar exchange rate has remained supported despite Australian inflation failing to trigger a sustained recovery in RBA hike expectations.

Australia's consumer prices increased by 0.4% in August, with annual inflation rising from 3.5% to 4.0%, but underlying price pressures were less concerning.

This has prompted investors to reduce expectations for another RBA rate increase in November, with markets pricing only a partial chance of further tightening before the end of the year.

The Pound (GBP) received some support from stronger-than-expected UK growth data, which showed the UK economy expanded by 0.5% during the second quarter, revised higher from the previous estimate of 0.4%.