Pound to Aussie Falters on RBA Governor's Mixed Signals

The Pound to Australian Dollar exchange rate rose by approximately 0.3% on Tuesday, reaching AU$1.9081, as investors reacted to mixed comments from Reserve Bank of Australia Governor Michele Bullock.

Bullock's remarks at the annual Anika Foundation lunch weighed on the 'Aussie' ahead of key inflation data, with investors initially scaling back expectations for further Reserve Bank of Australia interest rate hikes.

However, Bullock also emphasized the high level of uncertainty surrounding the economic outlook and noted that previous interest rate increases would take more time to feed through into the economy.

The Pound traded in a relatively narrow range against most major currencies on Tuesday, with investors awaiting Thursday's Bank of England interest rate decision. If the Bank remains non-committal about another rate hike later this year, Sterling could struggle to find support.