The Pound Australian Dollar (GBP/AUD) exchange rate is steadily rising during this morning’s European session as hopes over the UK’s lockdown easing bolsters the appeal of Sterling.
The GBP/AUD pairing are trending around the 1.8349 level as a lack of notable data from Australia limit’s AUD gains.
Pound (GBP) Supported by UK Lockdown Easing Hopes
The Pound has been steadily rising against the Australian Dollar since markets opened this morning as hopes over the UK’s economic recovery and reopening bolster Sterling appeal.
Sajid Javid, the newly-appointed health secretary is expected to update MP’s on when lockdown restrictions will be eased in the UK later today.
Speaking on Sunday following the news that he would take on the role as health secretary, Javid said:
‘Thanks to the fantastic efforts of our NHS and social care staff who work tirelessly every day, and our phenomenal vaccination programme, we have made enormous progress in the battle against this dreadful disease.’
It comes as the UK stepped up its vaccination rollout over the weekend, hundreds of walk-in vaccination centres opened to boost the number of people in the UK who had been vaccinated against the virus.
NHS England director of primary care Dr Nikki Kanani commented on the vaccination rollout, saying:
‘The uptake we have seen among 18 to 29-year-olds in the last week shows how much young adults – like all those before them – recognise the importance of getting protected, as the NHS continues to deliver the largest and fastest vaccination programme in history at a phenomenal rate.’
Australian Dollar (AUD) Limited on Absence of Economic Data
The Australian Dollar has found itself limited at the start of this week as a lack of economic data from Australia does nothing to support the ‘Aussie.’
Outbreaks of the delta variant of coronavirus in Sydney have also weakened the Australian Dollar’s sentiment as rising cases look to derail economic recovery hopes.
NSW Premier Gladys Berejiklian said this morning that:
‘We have to be prepared for the numbers to bounce around and we have to be prepared for the numbers to go up considerably because with this strain, we are seeing almost 100% of transmission within households.’
A slower vaccination programme across Australia has left many citizens susceptible to catching and becoming ill with the virus.
Pound Australian Dollar Exchange Rate Outlook: UK GDP Figures in Focus
For Pound investors, Wednesday will see the release of the final UK GDP growth rate figures for Q1 which look to confirm the UK economy contracted at the start of the year due to strict lockdown restrictions.
Australian Dollar traders will be focusing on a speech from Reserve Bank of Australia (RBA) Governor Lowe on Wednesday, any dovish commentary from Lowe could limit the Australian Dollar further.
The GBP/AUD pairing will continue to be driven by any further coronavirus developments in the coming days as the delta variant in the UK and a rise in coronavirus cases across Asia worry global markets.