In lieu of any notable data from both the UK and Australia the Pound to Australian Dollar (GBP/AUD) exchange rate has fallen today, as the Australian Dollar benefits from US Dollar (USD) weakness.
At the time of writing the pair are currently trading at around AU$1.7728.
Pound (GBP) Muted as UK Lockdown Optimism Fades
The Pound found little support today as an absence of data from the UK left the currency open to losses.
Sterling has lost its bullish run over the past few days after the excitement over the Government’s proposed roadmap out of lockdown died down.
Today came the announcement that GCSE and A-Level exams have once again been scrapped due to the impact of the coronavirus pandemic.
Speaking today, Education Secretary Gavin Williamson:
‘This year’s students will receive grades determined by their teachers, with assessments covering what they were taught and not what they have missed.’
‘Teachers have a good understanding of their students’ performance and how they compare to other students this year and from those of previous years.’
Australian Dollar (AUD) Exchange Rates Benefit From US Dollar (USD) Weakness
The Australian Dollar was supported today as the safe-haven US Dollar continues to weaken following comments from Federal Reserve Chair Jerome Powell who said:
‘The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved.’
US Dollar jobless claims for the week starting February 20 fell to their lowest level in three months, however with 730,000 applying for benefits the US economy has a long road to recovery.
AUD has further been supported by a global risk-on mood, as investors are more willing to take risks and buy into currencies like the ‘Aussie.’
GBP/AUD Exchange Rate Outlook: UK Manufacturing PMI in Focus
Pound investors will tomorrow keep an eye on Bank of England (BoE) Haldane’s speech, with expected hawkish commentary surrounding the inflation outlook for the UK, pushing Sterling higher.
Pound investors will also look towards Monday’s release of February’s final PMI Manufacturing data from the UK, which is forecast to be at 57.7, an increased growth in the sector.
Australian Dollar traders will be looking towards their own PMI Manufacturing release on Sunday, which is forecast to show a slowdown in growth which could spell trouble for the currency.