The Pound to Australian Dollar exchange was rangebound today, with the pairing currently trading at around AU$1.7847.
Pound (GBP) Holds Despite South African Coronavirus Variant Wreaking Havoc
The Pound held steady against the Australian Dollar today despite rising fears over various variants of the coronavirus running rampant through the UK.
GBP investors have remained cautious today as Health Secretary Matt Hancock announced that travellers will face a jail sentence of up to 10 years if they try to hide a trip to a ‘red zone’ country to help combat the spread of more infections variants of the virus.
Furthermore, high-risk arrivals to England will be taken to quarantine hotels from the 15th of February, arriving travellers will pay for the hotels and meals themselves, for a price of £1,750.
England’s deputy chief medical officer, Professor Jonathon Van-Tam spoke at a press conference last night that the South African variant is unlikely to become dominant in the UK.
He said:
‘I don’t think that this is something that we should be concerned about right at this point in time.’
Australian Dollar Holds Steady as Australian Business Confidence Beats Forecasts
The Australian Dollar held steady today following today’s Australian Business Confidence release, which beat forecasts and rose to 10 at the start of 2021, a solid increase on the previous month and well above the long-run average as economic recovery gains momentum.
Alan Oster, NAB Group Chief Economist commented on the release saying:
‘Business started the year on a more optimistic note, even as conditions eased from the strength we saw in December. Importantly, employment conditions remain in positive territory – so overall businesses are still expanding their workforce.’
‘The decline in conditions was broad-based across industries, except for a small improvement in recreation & personal services, which continues to make small gains as restrictions ease.’
Investors also remain optimistic over the state of the global coronavirus pandemic situation as vaccine rollouts begin across the globe as risk appetite increases.
Pound to Australian Dollar Forecast: Could Sterling Rise on Back of UK GDP Growth?
The Pound to Australian Dollar exchange rate will continue to be dictated by any further coronavirus developments, with a continued successful vaccine rollout in the UK proving positive for Sterling.
Pound traders will be keeping an eye on Bank of England (BoE) Governor Andrew Bailey’s speech tomorrow evening.
If Governor Bailey continues to be optimistic about the outlook for the British economy, then the GBP/AUD exchange rate could be pushed higher.
Pound investors will also be looking to Friday’s GDP Q4 data release, which is expected to show a small growth in GDP at the end of 2020 despite coronavirus lockdown restrictions.