The Pound Australian (GBP/AUD) exchange rate has been trading in a mixed range since markets opened this morning as both domestic and global coronavirus concerns limit the appeal of both currencies.
At the time of writing the GBP/AUD pairing are trending around the AU$1.8649 as the latest Reserve Bank of Australia (RBA) meeting minutes appear to have been largely dismissed by markets.
Pound (GBP) Limited on Back of UK Coronavirus Worries
In absence of any economic data all eyes have been firmly on any coronavirus developments to drive movement in the Pound this morning.
Whilst many celebrated ‘freedom day’ yesterday as virtually all lockdown restrictions alongside social distancing measures were scrapped, others felt the easing had come too soon as coronavirus cases surge across the UK.
More so, leading a press conference yesterday evening the Prime Minister Boris Johnson announced that vaccine passports would be implemented in clubs at the end of September.
Tory backbenchers and opposition MP’s have slammed the move, Labour MP Justin Madders commented on the announcement saying:
‘How can it be safe to go to nightclubs now, with no protective measures, if in September it will require double jab status? It makes no sense. This proposal is more confusion and incompetence from the heart of government at the expense of public health. They need to get a grip.’
It comes as the US has now warned its citizens to not travel to the UK as cases continue to rise.
The Centres for Disease Control and Prevention have updated their guidance for travel, stating that:
‘Because of the current situation in the United Kingdom, even fully vaccinated travellers may be at risk for getting and spreading Covid-19 variants.’
Australian Dollar (AUD) Struggles as Over Half of Australia are in Lockdown Restrictions
The Australian Dollar is struggling for direction this morning as it is revealed that more than half of Australian’s are now under some form of lockdown restrictions.
As South Australia now enters a 7-day lockdown the outbreak in cases does not appear to be easing anytime soon.
The chief health officer of New South Wales, Kerry Chant, commented on the outbreak as the state records a further 78 new cases:
‘We are seeing more hospitalisations, more admissions to ICU, more people on ventilators – we have to stop the spread of Covid.’
The latest RBA meeting minutes have been largely ignored by markets this morning as the minutes took place before the ongoing coronavirus outbreak in Australia.
Pound Australian Dollar Exchange Rate Outlook: Preliminary ‘Aussie’ Retail Sales in Focus
For Pound investors, a further absence of economic data from the UK will see a continued focus on any domestic coronavirus developments tomorrow.
Australian Dollar traders will look towards tomorrow’s preliminary retail sales figures for June which look to worry the ‘Aussie’ further as retail sales are forecast to have contracted to -0.4%.
The GBP/AUD exchange rate will continue to be driven by any change in the global market mood in the coming days.