On August 2021 market pricing, the BoE could lift 0.10% Bank Rate before RBA raises its 0.10% cash rate, potentially making GBP higher yield than AUD.
That would be a rare turning of the bond market tables.
A narrower or positive yield gap would lift yellow line in the attached graph but would it also lift GBP/AUD??????
I think GBP/AUD is being curbed into 1.8640-1.8990 consolidation range short-term as AUD/USD (not pictured) attempts to stabilise near 0.73, but that GBP/AUD is the midst of a fundamentally driven, longer-term recovery as GBP's Brexit discount fades and AUD's 'high yield' status is impaired.