GBP/AUD Exchange Rate Rangebound as Australian Markets Eye Nation’s Covid-19 Developments
The Pound Australian Dollar exchange rate held steady today as Australia’s Covid-19 fears spiked after a small outbreak of the virus in Brisbane. The pairing is currently trading around AU$1.80.
Annastacia Palaszczuk, the Premier of Queensland, said the situation will have to be taken ‘day-by-day’. She commented:
‘In terms of the greater Brisbane region, we just have to take this day-by-day. I said that we will give the most up-to-date information we can, every single morning. Do we expect to see more cases? Probably. The big question will be whether or not we see unlinked community transmission.’
As a result, the Australian Dollar (AUD) struggled to rise against Sterling today as Australia’s Covid-19 uncertain situation has dampened confidence in the nation’s economy.
Added to this, the European Union’s coronavirus situation appears to be worsening, with cases of the virus rising in the Eurozone’s key economies, such as Germany and France.
Pound (GBP) Struggles to Rise as Prime Minister Boris Johnson Urges Caution as Some Lockdown Restrictions are Eased
The Pound (GBP) failed to rise against the Australian Dollar (AUD) today despite yesterday seeing England taking its first big step towards easing lockdown restrictions.
Groups of up to six are now legally allowed to meet in outdoor spaces. However, Prime Minister Boris Johnson has urged caution as new variants of the virus could jeopardise the effectiveness of the vaccine rollouts.
Today also saw the announcement that UK Covid-19 deaths have passed 150,000, despite a falling death toll.
The ONS also revealed that for the first time in six-months both England and Wales had no longer recorded excess deaths.
Boris Johnson has also announced April as being the ‘second dose month’ for those awaiting their second dose of the Covid-19 vaccine.
GBP/AUD Exchange Rate Could a Strong UK GDP Reading Bolster Sterling?
Australian Dollar (AUD) traders will be awaiting tomorrow’s publication of the latest Australian Building Permits figure for February.
Any improvement in the outlook for Australia’s economy would be AUD-positive.
Tomorrow will also see the release of Australia’s AiG Performance of Manufacturing Index.
Again, if this points to an improvement in Australia’s manufacturing sector, then we could see the AUD/GBP exchange rate begin to head higher.
However, risk-sentiment will continue to drive demand for the risk-sensitive Australian Dollar, so any signs of rising cases of Covid-19 in Europe or Australia would drag down the ‘Aussie’.
Pound (GBP) traders will be eyeing tomorrow’s release of the UK’s final GDP reading for the final quarter of last year.
If this points to an improvement in the UK economy, however, then the Pound Australian Dollar would head higher.