The GBP/AUD pair has seen some rough seas lately, as the GBP has depreciated quite significantly against the AUD. The interesting thing about this pair is that while both currencies that make it up are majors, the pair itself is not.
As said above, the GBP is a major, and it is quite a record-holder and over-achiever in several regards. It is the world’s oldest currency still in use today. It is the third most popular reserve currency, as well as the 4th most traded currency of the Forex market. The GBP has been floating since 1971, and it has always maintained a very strong position value-wise. With the 2016 Brexit vote, it did take a bit of a hit though, one that may prove temporary as details of the divorce of the UK from the EU are hammered out, and the uncertainty is eliminated.
Although still a member of the EU, the UK has always resisted giving up its currency and joining the Eurozone.
Upon its introduction, the Australian Dollar may have replaced the Australian Pound, but it remained pegged to the British Pound for a while. Later, it spent some years pegged to the USD too. These days, it is a floating currency, one that is quite popular with traders on account of the diversification avenues it provides, due to its exposure to the economies of South Asia. Indeed, the Australian economy is largely dependent on exports of commodities to various Asian countries, and thus, it can be considered a strong commodity currency.
The GBP may be linked to the AUD through the two countries’ colonial past, but the two economies have always been quite disparate on account of the geographical distances involved. Commodity prices represent a major factor in the rise of the AUD against the GBP, whenever there’s a boom in this regard.
Free currency charts