GBP/AUD is an interesting currency pair to trade in the forex market, pitting the fourth most traded currency against the fifth most traded currency in the world. The commodity currency AUD is heavily influenced by the price of key commodities exported by Australia, including coal, iron ore and even gold. On the other hand, the GBP is a more stable currency but it has seen significant volatility in recent years on account of developments surrounding Brexit.In addition, GBP/AUD's exchange rate is impacted by the release of important economic data from the UK and Australia, as well as monetary policy and interest rate decisions by the Bank of England (BOE) and the Reserve Bank of Australia (RBA). Key economic data that can drive price action in this currency pair include GDP, trade balance, inflation, employment, retail sales, manufacturing and services activity, and business confidence.In addition, GBP/AUD is also heavily influenced by developments in Europe and China. This is because Europe is the UK's major trading partner while Australia shares a strong trade relationship with China. Any events that impact the trade relationship between these regions have a direct impact on the British or Australian economy and on the Pound Sterling and Australian dollar as well.