Pound Eyes Recovery Towards 100-Day MA as RBA Hike Fails to Impress

The British pound is expected to extend its recovery against the Australian dollar in the coming week, despite the Reserve Bank of Australia's interest rate hike on Tuesday.

The RBA is widely anticipated to raise the cash rate by 25 basis points to 4.60%, and while this may provide a temporary boost to the Aussie, any lift will likely be short-lived due to the move being fully priced.

Markets price around 65 basis points of RBA tightening over the next twelve months, and several members of the RBA judged it 'quite possible that the upside risks to the inflation forecast would crystallise.'

The Pound to Australian Dollar exchange rate has climbed back above its 21-day moving average after buyers defended September's lows once again.