GBP/AUD Holds Steady as RBA Keeps Rates Unchanged

The Pound to Australian Dollar exchange rate traded in a narrow range on Tuesday after the Reserve Bank of Australia's policy decision. The 'Aussie' initially dipped after the announcement, but quickly recovered as RBA Governor Michele Bullock struck a hawkish tone in her post-meeting remarks.

Bullock indicated that the bank had discussed the possibility of another rate rise and signalled that further tightening remains possible if inflation risks persist. She said: 'And we will go again if we need to. And I think personally that it is quite possible we might need to go, but we will wait and see what the data tells us.'

The Pound held firm on Tuesday after a report showed UK consumer confidence climbed to its highest level in almost two years in July.