Updated 13:30 13/08/21:
The Pound Australian Dollar (GBP/AUD) exchange rate has weakened this afternoon as downside in the US Dollar (USD) propels the ‘Aussie’ to head higher.
A lack of economic data from the UK has continued to limit the appeal of the Pound this afternoon as investors look towards coronavirus developments to drive movement in Sterling for the rest of the day.
Original article continues below:
The Pound Australian Dollar (GBP/AUD) is trading in a mixed range this morning as a lack of economic data from both the UK and Australia limits both respective currencies.
The GBP/AUD pairing are currently trading around the AU$1.8800 level as the UK travel industry is hit in its recovery by ‘confusing’ travel rules.
Pound (GBP) Exchange Rate Struggles to Make any Headwind
The Pound (GBP) has been struggling across the board this morning as a lack of economic data from the UK limits the appeal of Sterling exchange rates.
Despite preliminary GDP figures released yesterday from the UK, which showed the UK economy rebounded by 4.8% during Q2, investors remain jittery over the country’s economic recovery.
It comes as the CEO of Gatwick airport, Stewart Wingate, warns that the UK is far behind in its aviation recovery, stating:
‘In the UK we are all emerging to enjoy more freedoms due to our world class vaccination programme, however we are in danger of squandering the advantage that vaccination programme has afforded us for international travel. Our government needs to act now and remove unnecessary and costly PCR testing requirements for passengers, particularly for those double vaccinated.’
‘The UK aviation recovery is far behind countries in Europe such as France and Germany whose travel bookings are on average over 50% of pre-pandemic levels whereas in the UK it is sitting at approximately 16%.’
The Pound could be open to further losses throughout the day if the market mood improves and the Australian Dollar looks to push higher.
Australian Dollar (AUD) Pushes Higher Despite Ongoing Coronavirus Situation
The Australian Dollar (AUD) has pushed higher against the Pound (GBP) this morning despite the ongoing coronavirus outbreak across Australia.
Australia remains behind in its vaccination rollout as more cities in the country either enter lockdown restrictions or extend measures.
Associate Prof Holly Seale from UNSW commented on the problems facing vaccination rates, saying:
‘Going into this pandemic we were already facing challenges in understanding adult vaccination.’
‘We didn’t have good data to look at across communities, across Australia: where were the gaps in coverage [for vaccines] that were already recommended? And what were the barriers to adults getting vaccinated?’
Pound Australian Exchange Rate Outlook: UK Employment Change in Focus
Heading into next week, the latest UK employment change figures will give an indication into how the UK labour market is performing.
If the unemployment rate edges down the Pound could push higher at the start of next week.
AUD investors will keep an eye on the latest Reserve Bank of Australia (RBA) meeting minutes during Monday’s European session, if the RBA are dovish regarding the outlook for Australia the currency could tumble.