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Pound Sterling Australian Dollar (GBP/AUD) Exchange Rate Flat as PM Delays Publishing Brexit Bill

May 23, 2019 - Written by John Cameron

Pound Australian Dollar (GBP/AUD) Exchange Rate Muted as PM Delays Brexit Bill

The Pound Sterling Australian Dollar (GBP/AUD) exchange rate remained muted and the pairing is currently trading at an inter-bank rate of AU$1.8405.

On Thursday, the government has abandoned plans to publish Theresa May’s new Brexit withdrawal agreement on Friday.

Mark Spencer announced that the Bill would now be published in the week beginning 3 June.

Meanwhile, Sterling was hit by further Brexit pessimism and uncertainty as Leader of the House, Andrea Leadsom resigned.

Leadsom quit over Prime Minister Theresa May’s Brexit policy, which she stated has ‘elements I cannot support, that aren’t Brexit.’

The BBC Today Programme reported that further Ministers could resign, stating that the ‘programme has been told other ministers could soon follow.’

Reports have suggested that Theresa May's premiership is over, and the only suspense is when she will announce the date of her departure.

US-China Trade Tensions Leave GBP/AUD Flat

US-China trade tensions likely weighed on the risk-sensitive Australian Dollar as China state that trade talks cannot continue unless the US approach changes.

Speaking to reporters, China’s Ministry of Commerce spokesperson, Gao Feng said:

‘If the US would like to keep on negotiating it should, with sincerity, adjust its wrong actions. Only then can talks continue.’

Addressing the US sanctions on telecoms giant, Huawei, Gao noted:

‘The US crackdown on Chinese companies not only seriously damages the normal commercial cooperation between both countries, but it also forms a great threat to the security of the global industrial and supply chain.
‘China is firmly opposed to this. We will closely monitor developments and make adequate preparations.’

Australian Dollar (AUD) Flat as China State Media Increases Criticism of US

Meanwhile, Chinese state media have ramped up their criticism of America which likely escalated trade tensions.

On Wednesday, in an editorial in the People’s Daily the US was accused of ‘bullyism’.

Added to this, the state broadcaster, CCTV claimed the US were ‘delusional’ if it believed that ‘technological bullying’ could contain China.

This escalation of trade tensions likely dampened sentiment in the risk-sensitive ‘Aussie’, leaving the pairing flat.

Pound Australian Dollar Outlook: AUD to Slide as US Blacklists Further Chinese Tech Companies

Looking ahead to Friday, the Pound (GBP) could slide against the Australian Dollar (AUD) following the release of the UK’s retail sales.

If April’s retail sales slide further than expected, it could dampen sentiment in the UK currency.

Meanwhile, the risk-sensitive Australian Dollar could slide if US-China tensions heighten.

If the US proceeds to blacklist China’s largest surveillance technology companies, such as Hikvision and Dahua, the Pound Australian Dollar (GBP/AUD) exchange rate could rise.

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