The Pound Australian Dollar (GBP/AUD) exchange rate had dipped this morning on an absence of economic data from the UK to support Sterling appeal.
At the time of writing the GBP/AUD pairing are trending around the AU$1.8957 level as the ‘Aussie’ finds support on the back of a strengthening market mood.
Pound (GBP) Stumbles on Absence of Economic Data
The Pound has stumbled against the Australian Dollar since markets opened this morning as the strength on the global market mood paired with an absence of economic data did little to keep Sterling appealing.
Sterling looks to any further domestic coronavirus developments from the UK to drive movement in the currency today.
As cases rise across the UK investors remain cautious surrounding the UK’s economic recovery from the virus.
It comes as Scotland’s national clinical director Professor Jason Leitch has stated that he is concerned over a spike in cases in Scotland, saying:
‘We are concerned. It’s principally young people, but not only young people. But a big percentage are under 40, so that means the harm is not as significant, but people are still harmed by this virus, either the older people who get it or some small proportion of those younger people.’
Recent figures from the Office for Statistics have also revealed that Covid-19 deaths in England and Wales are at their highest level since March.
Australian Dollar (AUD) Bolstered by Upbeat Global Market Mood
The Australian Dollar has soared this morning as a weakening US Dollar and upbeat market mood allow the risk-correlated ‘Aussie’ to push higher.
Whilst Australia continues to deal with an ongoing coronavirus situation across Australia, a more positive tone surrounding equity markets bolstered AUD exchange rates.
The Australian Minister for Health, Greg Hunt today noted the success that Australia has had so far in the pandemic, saying:
‘it is important to acknowledge that what we have done as a nation … in the midst of a pandemic and sometimes it does appear and feel as if there are those that would airbrush a global pandemic and pretend this is an Australian phenomenon. It’s not.’
‘So this pandemic evolving and it throws new challenges. Do I think we’re up for it as a nation? I do. Do I think what we are doing will protect Australians? Absolutely.’
The ‘Aussie’ could continue to push higher throughout the day if the market mood continues to improve.
Pound Australian Dollar Exchange Rate Outlook: CBI Distributive Trades in Focus
For Pound investors, today will see the release of the latest CBI distributive trades survey from the UK for August.
If the survey softens as forecast the Pound could find itself weakening further across the board.
Australian Dollar traders will continue to keep an eye on the global market mood in the coming days.