GBP/AUD Rate Hits Two-Month Lows Amid Hawkish RBA Bets

The Pound to Australian Dollar exchange rate has fallen to its worst levels in two months due to increased bets on a Reserve Bank of Australia interest rate hike.

Last week saw the GBP/AUD rate hit AU$1.8882, down roughly 0.8% from the start of last week's session.

The Australian dollar initially softened as geopolitical uncertainty sapped market risk appetite, but then received a boost with the publication of Australia's latest consumer price index.

Data showed that while headline inflation cooled from 3.8% to 3.5% year-on-year in July, this was ahead of forecasts and fueled RBA rate hike bets.