GBP/AUD Exchange Rate Slips in Early Trade
The Pound to Australian Dollar (GBP/AUD) exchange rate opens this week’s session on the back foot as the ‘Aussie’ is bolstered by hopes Australia is close to easing its coronavirus lockdown.
At the time of writing the GBP/AUD exchange rate is trading at around AU$1.9247, down roughly 0.4% from this morning’s opening rate.
Australian Dollar (AUD) Jumps on Lockdown Easing Hopes
The Australian Dollar (AUD) leapt out of the gate this week in response to speculation Australia could start to lift its lockdown measures in the coming weeks.
Australia reporting a significant fall in new coronavirus cases in recent days there are whispers from within government that there may be scope to begin easing restrictions and reopening parts of the economy.
Coronavirus numbers in Australia: how many new cases are there? Covid-19 map, statistics and graph https://t.co/6ZYldCdXNx
— Guardian Australia (@GuardianAus) April 27, 2020
Kyle Rodda, Market Analyst at IG, comments:
‘Only 10 new COVID-19 cases across the country have so far been confirmed today, as the number of active cases falls to 1,052. It’s prompted further talk from State and Federal leaders that some social distancing measures may be eased in coming weeks, as policymakers experiment with re-opening parts of the domestic economy.
‘Though it’s been stated a full re-opening of business will still be a long way off, a small lift of the restrictions on public movement may well be less than a month away for parts of the country.’
While a number of social distancing measures are likely to need to remain in place for some time, the news has certainty cheered AUD investors, which alongside a broader improvement in risk sentiment is lending support to the Australian Dollar this morning.
Pound (GBP) Buoyed by Boris Johnson’s Return
While the, Pound (GBP) is currently on the defensive against the Australian Dollar (AUD), the UK currency is faring better against the rest of its peers as markets welcome the news that Boris Johnson has returned to Downing Street to resume his duties as Prime Minister.
Speaking following his return Johnson apologised for being ‘away from my desk for much longer than I would’ve liked’.
There had been concerns about a lack of leadership at the top of government over the past couple weeks while Johnson was recovering the coronavirus so GBP investors are relieved to see him back at the helm.
GBP/AUD Exchange Rate Forecast: UK Lockdown Strategy in Spotlight
Looking to the week ahead, the Pound to Australian Dollar (GBP/AUD) exchange rate is likely to remain highly sensitive to coronavirus developments.
For GBP investors this will mostly focus on the government’s strategy for exiting the lockdown, with the Pound likely to face some pressure if the government remains reluctant to share any details.
Meanwhile, the publication of Australia’s quarterly consumer price index will likely be the main draw for AUD investors this week, as the look to see how the coronavirus crisis may have impacted inflation in the first quarter.