This week will see the publication of major UK data, but the Pound Australian Dollar (GBP/AUD) exchange rate is fluctuating so far.
Investors are hesitant to remain bullish on the Pound amid concerns about UK-EU tensions around coronavirus vaccines. However, the risk and trade-correlated Australian Dollar has been hit by a risk-off rush today, amid a plummet in the Turkish Lira.
Last Week: GBP/AUD Avoids Losses as UK Optimism Persists
The Pound to Australian Dollar exchange rate was highly volatile last week, as both currencies attempted to benefit from the week’s developments.
Sterling remained appealing amid lasting optimism that the UK economy would be one of the first major economies to recover from the coronavirus pandemic.
Meanwhile, the Australian Dollar benefitted from rises in risk-sentiment as the Federal Reserve took a dovish stance on monetary policy.
GBP/AUD movement was volatile throughout the week, so the pair closed the week fairly close to its opening levels.
Three Things to Watch For This Week
- UK Job Market Report
Tomorrow will see the publication of Britain’s latest job market results. If employment change and unemployment rate stats beat forecasts, they could bolster Britain’s economic outlook and support Pound strength.
- PMI Projections
UK and Australian PMI projections for this month will be published on Wednesday. They will be the best indication yet of how the UK and Australian economies are weathering or recovering from the pandemic this month.
- UK Retail Sales Report
Britain’s February retail stats will be published on Friday. These will give investors a better idea of how UK economic activity held up last month.
With risk-sentiment fluctuating, the Pound to Australian Dollar exchange rate could be in for more mixed movement as markets await key UK data and PMI projections.