Pound Australian Dollar Exchange Rate Wavers as ‘Partygate’ Report Expected Imminently
The Pound to Australian Dollar (GBP/AUD) exchange rate is trading in a narrow range today as GPB investors await the publication of Sue Gray’s full ‘partygate’ report. Meanwhile, the Australian Dollar (AUD) is subdued as lockdowns across China continue, unnerving AUD investors.
At the time of writing, the GBP/AUD exchange rate is trading at approximately AU$1.77, virtually unchanged from this morning’s opening levels.
Pound (GBP) Muted as Investors Await ‘Partygate’ Report Publication
The Pound (GBP) is rangebound against the Australian Dollar this morning as investors brace for Sue Gray’s ‘partygate’ report.
The ‘partygate’ scandal first came to light in November 2021, following reports that key Government figures – including Prime Minister Boris Johnson – were in breach of the 2020 lockdown laws.
The full report has now been delivered to Downing Street and is expected to be released to the general public imminently.
Depending on the contents of the report, it could reignite questions over Johnson’s premiership, with the resulting political uncertainty likely to take its toll on the Pound.
Commenting on the ‘Partygate’ scandal, the UK Environment Secretary stated:
‘That boundary between what was acceptable and what wasn’t got blurred and that was a mistake and Sue Gray highlighted that in her first interim report and I think she is almost certainly going to say more about that when her final report comes out.’
For the remainder of today, GBP exchange rates are likely to remain susceptible to the report’s findings.
Australian Dollar (AUD) Mixed as China’s Lockdown Continues
The China-proxy Australian Dollar (AUD) is trending marginally lower against the Pound (GBP) this morning as lockdowns continue across China.
As Beijing maintains its ‘zero-Covid’ policy, much of China – Australia’s largest trading partner – remains in lockdown.
As a result, economists predict China’s economy will continue to shrink in the near-term. In response, this is triggering global recession fears and driving investors away from the risk-sensitive ‘Aussie’.
However, fresh interest rate hike bets for the Reserve Bank of Australia (RBA) are limiting the Australian Dollar’s losses today.
In a speech overnight, RBA policymaker Luci Ellis struck a hawkish tone, suggesting the bank will be looking to raise interest rates over the course of the year. This comes after the RBA hiked interest rates to 0.35% in May, it’s first interest rate hike since 2010.
At present, the RBA is expected to deliver aggressive action at its June policy meeting, providing some support to the ‘Aussie’.
Pound Australian Dollar Exchange Rate Forecast: Will Sunak Implement Additional Support Measures to Ease UK Cost-of-Living?
Looking ahead, the Pound Australian Dollar exchange rate is likely to be influenced by the UK Chancellor of the Exchequer, Rishi Sunak’s, response to the UK cost-of-living crisis.
As energy prices continue to rise, Sunak is expected to announce additional financial measures – as soon as Thursday – to support struggling families. Will these measures be enough to boost GBP exchange rates?
Later in the week, the ‘Aussie’ may be dented by April’s Australian retail sales: sale growth is predicted to slow from 1.6% to 0.9%.