The pound to Australian dollar exchange rate is 0.48 pct higher at 1.6340.
The euro to Australian dollar rate is 0.55 pct lower at 1.3873.
The Australian dollar to US dollar exchange rate is 0.48 pct up at 0.9616.

Please note that the above quote is taken from the wholesale spot markets - your bank will affix its own discretionary spread when passing on a retail rate. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering more currency. Please read more here.

"Sterling is trading three cents off its highs against the AUD this morning. We look to the RBA minutes this evening for clues as to a further interest rate cut later this year. Weakness in Australian data would justify another cut but in the last statement, Governor Stevens sounded relatively comfortable with the recent RBA cuts for the time being," says Richard Driver at Caxton FX.

Thursday morning’s Chinese manufacturing PMI figure will also be key for GBP-AUD, but for now this pair trades just above 1.63.

Outlook for the Australian dollar stabilises, a bounce back is predicted

For the AUD this week, we do have the minutes from the June RBA meeting tomorrow. Westpac Global Strategy Group tell their clients that the communique from the RBA will be of importance:  

"June’s on hold decision was accompanied by an unusually short statement. So the minutes may give more detail on the super-brief statement.

"While the RBA did note that "the exchange rate has depreciated since the previous Board meeting, although, as the Board has noted for some time, it remains high considering the decline in export prices that has taken place over the past year and a half", body language from the RBA in the minutes will be important here. Any shift in this language could be perceived that the very rapid fall in the currency is having an impact on RBA thinking."

Westpac Global Strategy Group say they see the Australian dollar going through the process of basing here:

"The plunge in the A$ from the high of 1.0482 on April the 11th is only currently beaten over that period by the South African Rand and its linked currencies including the Lesotho Loti and the Swaziland Lilangeni. So clearly, the A$ has fallen seriously out of favour with global investors. We think the speed of the fall hit extremes recently.

"As such, we could see a bounce in the weeks ahead. We could envisage a bounce back towards 0.9800. This could see AUD crosses including AUD/EUR back towards 0.7400 and AUD/JPY back towards 96.00. However, with tapering set to start later in the year and commodities still looking weak, its hard to envisage a move beyond those level."

New Zealand dollar off to a good start

The New Zealand dollar has started the week with some more positive NZ data.

"Data last night revealed an impressive upturn in kiwi consumer sentiment, which just adds to the brighter outlook for the NZ economy. The gauge actually hit its highest level in a year. The NZD hasn’t exactly rallied but it has positive implications for an eventual RBNZ rate hike," says Richard Driver.

Sterling is trading at 1.94 this morning and we are expecting a bounce off current levels.