The UK is clearly not the only country facing a difficult fiscal prognosis but, since it also runs a sizeable current account deficit, there is potential for the exchange rate to be particularly sensitive to bad fundamental news, Rabobank's FX analyst Jane Foley reports.
AUD/USD is trading in a tight range around 0.6520. Australia Q2 real GDP growth beat expectations, BBH FX analysts report.
US Dollar (USD) is expected to trade in a range between 7.1300 and 7.1500. In the longer run, the current price movements are likely part of a range trading phase between 7.1200 and 7.1650, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.