Pound to Australian Dollar Sideways at 1.88614 as Tensions Offset RBA Gains

GBP/AUD trades sideways at 1.88614 (-0.18%) after initial sharp declines on hawkish RBA comments from Deputy Governor Andrew Hauser, which propelled AUD/USD to 0.71789 (+0.61%). Middle East tensions, including a US interception of an Iranian-linked vessel in the Strait of Hormuz, pressured risk-sensitive AUD but it recovered versus a weakening GBP amid UK political uncertainty over Peter Mandelson’s appointment and looming jobs data. GBP/USD rose to 1.35403 (+0.43%) but cross remains volatile, with UK CPI, Australian PMI, and labour data as key catalysts ahead.