The Pound Australian Dollar (GBP/AUD) exchange rate has been rangebound since markets opened this morning following the release of the latest flash PMI figures from the UK.
The GBP/AUD pairing are trading around the AU$1.9065 level as the Australian Dollar continues to struggle against the ongoing coronavirus outbreak across Australia.
Pound (GBP) Mixed on Flash PMI Figures from the UK
The Pound has been mixed across the board this morning following the release of the latest flash PMI figure from the UK for August.
Whilst the manufacturing PMI rose more than forecast, the UK services PMI softened more than expected, though remained in growth territory.
Chris Williamson, Chief Business Economist at IHS Markit, commented on the flash PMI’s saying:
‘Although the PMI indicates that the economy continues to expand at a pace slightly above the pre-pandemic average, there are clear signs of the recovery losing momentum in the third quarter after a buoyant second quarter.’
‘More positively, business expectations for the year ahead perked up in August, encouraging a record jump in employment as furloughed workers were brought back to the workplace. However, demand and supply availability need to improve further for this rise in employment to be sustained in coming months.’
The Pound will look to any further coronavirus developments to drive movement in GBP exchange rates for the rest of the day.
Australian Dollar (AUD) Investors Remain Focused on Ongoing Coronavirus Outbreak
The Australian Dollar has remained on the back foot this morning as investors keep all eyes on the ongoing coronavirus outbreak across Australia.
It comes as New South Wales recorders a further 818 cases and 3 deaths from the virus.
Australian Prime Minister Scott Morrison stated that Australian’s would need to learn to live with the virus, speaking at a question time he said:
‘I’d be interested to know when those opposite have the opportunities to make remarks in these and other places, if we’re not to open up at 70% and 80%, then – when? When is that going to happen? At what point?’
‘At what point are we going to continue to have to ensure that Australians suffer under the conditions that have been necessary?’
Flash PMI figures form Australia showed that much of the Australian economy re-enter contraction territory as a result of the outbreak.
Pound Australian Dollar Exchange Rate Outlook: Coronavirus Developments in Focus
An absence of economic data from both the UK and Australia will see investors keeping an eye on any further coronavirus developments moving forward.
If the coronavirus situation in Australia continues to worsen then AUD exchange rates are expected to tumble further.
More so the global market mood is also expected to drive movement in the Pound Australian Dollar pairing.