The Pound Australian Dollar (GBP/AUD) exchange rate has been muted since markets opened this morning as a broad weakness in the US Dollar bolsters the appeal of AUD exchange rates.
At the time of writing the GBP/AUD pairing are trending around the AU$1.8858 level as Sterling looks towards any domestic coronavirus developments to drive movement in the currency.
Pound (GBP) Muted on Lack of Notable Economic Data
The Pound has found itself muted against the Australian Dollar this morning as markets digest the latest interest rate decision from the Federal Reserve.
A lack of notable economic data from the UK has seen the Pound rely on coronavirus developments to drive movement in GBP exchange rates.
Yesterday afternoon saw the announcement from the UK government that fully-vaccinated citizens from the EU and US would be able to travel to the UK without the need to quarantine.
Today, speaking to Sky News foreign secretary Dominic Rabb hinted towards more countries being added to the UK’s green and amber travel lists:
‘We’ve done the job we had to do domestically and as we see other countries catch up if you like, I think we are increasingly confident that more countries will go either on amber or on to green.’
‘I know it has been frustrating, I know it has been an inconvenience, there’s been lots of things in this pandemic that have been inconvenient.’
‘But the truth is the whole tide – whether it is domestic restrictions, international – is going in the right direction of opening but we do need to just be careful, make sure we are doing it at the right time.’
Australian Dollar (AUD) Edges Higher Despite Ongoing Coronavirus Situation
The Australian Dollar (AUD) has edged higher since markets opened this morning as a result of a more dovish Federal Reserve, and weakening US Dollar.
However, any major gains for the ‘Aussie’ have been limited this morning as the coronavirus outbreak in Sydney worsens.
Sydney yesterday recorded its highest number of daily coronavirus cases, coming in at 205.
New South Wales (NSW) Premier Gladys Berejiklian commented on the ongoing situation:
‘We can only assume that things are likely to get worse before they get better given the quantity of people infectious in the community.’
Pound Australian Dollar Exchange Rate Outlook: Coronavirus Developments in Focus
The Pound Australian Dollar exchange rate will continue to be driven by any further coronavirus developments in the coming days from both the UK and Australia.
More so, ‘Aussie’ traders will look towards the strength on the global market mood, if the mood sours the Australian Dollar could see itself stumbling towards the end of the week.