The Australian dollar continued its advance against sterling which has been going on for more than two months and cost the pound 12 cents or 7% of its value. The pound is within four cents of the all-time low it achieved in February.
Sterling would have done even worse last week had it not been for the European Central Bank pledging to "do whatever it takes to preserve the euro". Where investor nervousness about Euroland had earlier dragged the pound lower, newfound enthusiasm for the euro after the ECB comment pulled it higher.
Two of the events most likely to affect GBP/AUD this week have nothing to do with either country; the ECB's policy announcement on Thursday and US payrolls on Friday. The Bank of England's policy announcement also comes on Thursday but there is only an outside chance of a rate cut.