GBP/AUD Exchange Rate Enjoys Boris Bounce
The Pound to Australian Dollar (GBP/AUD) exchange rate is on the rise this morning, amidst relief that Prime Minister Boris Johnson has left the hospital.
At the time of writing the GBP/AUD exchange rate is trading at around AU$1.9643, having climbed 0.3% from the start of today’s session.
Pound (GBP) Supported by Johnson’s Discharge From Hospital
The Pound (GBP) has found support at the start of this week’s session following the news that Boris Johnson was discharged from the hospital over the weekend.
The Prime Minister had spent some time in intensive care last week due to complications from contracting the coronavirus.
PM's Covid-19 timeline: from 'mild symptoms' to a brush with death https://t.co/Bsk8R84h0K
— Guardian politics (@GdnPolitics) April 12, 2020
While Johnson is unlikely to resume his duties immediately as he reportedly ‘focuses on recovery’ the news was welcomed by GBP investors.
At the same time, this upside in Sterling sentiment looks to be tempered by the expectations that the UK’s lockdown could remain in place for at least another month.
Foreign Secretary Dominic Raab, who has been deputising for Johnson during his time in hospital warned that it is ‘absolutely crucially important’ not to ease the lockdown measures too early.
Discussing the government’s review on whether to extend the lockdown, which is due by Thursday, Raab said:
‘We don’t expect to make any changes to the measures currently in place at that point and we won’t until we’re confident, as confident as we realistically can be, that any such changes can be safely made.’
Australian Dollar (AUD) Buoyed Stronger-Than-Expected Chinese Data
At the same time, the Australian Dollar (AUD) has been able to hold its own this morning following the publication of China’s latest trade figures.
March’s trade figures indicate the Chinese economy is already on the road to recovery after coming to a screeching halt at the start of the year due to the coronavirus outbreak.
With China being Australia’s largest trading partner the news was welcomed by AUD investors, which alongside a broad improvement in market sentiment is helping to prop up the ‘Aussie’ this morning.
GBP/AUD Exchange Rate Forecast: Markets to Keep an Eye on Brexit
Looking ahead, while coronavirus developments will likely continue to act as the main catalyst, movement in the Pound to Australian Dollar (GBP/AUD) exchange rate may also be influenced by Brexit headlines.
UK and EU negotiators are set to talk on Wednesday to discuss the timetable for the next round of Brexit negotiations.
GBP investors will be looking for any signs that the UK government may be considering a delay to the current deadline of December after the coronavirus outbreak sidelined talks in recent weeks.
Meanwhile, the focus for AUD investors will undoubtedly be on the publication of Australia’s latest jobs report on Thursday.
This is likely to put some pressure on the Australian Dollar as the report will undoubtedly show a surge in unemployment last month as workers were laid off by the coronavirus crisis.