The pound to Australian dollar exchange rate is 0.952% higher on the day with 1 GBP = 1.4971 AUD. The pound to New Zealand dollar exchange rate is 0.263% higher with 1 GBP = 1.8637 NZD. The British Pound has retaken significant ground, with the Reserve Bank of Australia keeping rates on hold. "The RBA kept rates on hold at 4.75% in the overnight session. The central bank indicated a clear tightening bias but revealed that it would hold off until global tensions ease. In the face of the high Australian inflation figure released last week, hopes for a rate hike had built up, and positions are now being unwound," says a note from money transfer company Caxton Fx. GBP AUD is now trading up near 1.50, well off its recent lows. "This pair could have further to climb as disappointment surrounds the RBA’s lack of an overtly hawkish outlook," say Caxton. New Zealand dollar The kiwi dollar remains robust in the face of shaky risk appetite, helped by positive comments from NZ Prime Minister Key. New Zealand exporters are being frustrated by the strength of the kiwi dollar but PM Key has warned that the Reserve Bank of New Zealand should not intervene to weaken their outperforming currency. Intervention is often unsuccessful but the threat of it can diminish a currency’s appeal. Risk appetite has not yet returned in force in response to the US debt ceiling progress, but the kiwi dollar is still holding up well. The pound to New Zealand dollar continues to trade strongly around 1.86 and if risk appetite does return and UK data disappoints, sterling could spend the day on the back foot.

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