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Pound Australian Dollar (GBP/AUD) Exchange Rate Soars as ‘Aussie’ Struggles For Direction

August 9, 2021 - Written by John Cameron

The Pound Australian Dollar (GBP/AUD) exchange rate has soared this morning as the Australian Dollar continues to struggle against a sour market mood and the strength of the US Dollar.

Despite a lack of economic data from the UK, Sterling continues to rise as Scotland’s freedom day from coronavirus arrives. At the time of writing the GBP/AUD pairing are trending around the AU$1.8924 level.

Pound (GBP) Finds Support as Scotland Eases Lockdown Restrictions

The Pound has found itself supported against the Australian Dollar this morning as Scotland’s coronavirus lockdown restrictions come to an end today.

Much like the UK three weeks ago, Scotland has eased most of its lockdown restrictions on today’s ‘freedom day’.

Speaking to UK television this morning, First Minister of Scotland Nicola Sturgeon said:

‘We should also feel positive about where we are right now. If we all behave with appropriate caution – wearing our face coverings where required, continuing to keep a safe distance from people in other households even though it’s not a legal requirement – then we hopefully can lift these restrictions and continue to see the virus stay under control.’

‘Wearing a face covering when we go to a shop or on public transport – that’s not something we want to be doing for longer than necessary but it’s a relatively small price to ask people to pay to allow us to interact properly with our families.’

Sterling investors will look towards any further domestic coronavirus developments today to continue to bolster the Pound.

Australian Dollar (AUD) Sours on Weakening Global Market Mood

The Australian Dollar (AUD) has struggled this morning as the strength in the US Dollar and weakening market mood does nothing to support the appeal of the risk-correlated ‘Aussie’.

It comes as Australia’s Prime Minister Scott Morrison’s approval rating has hit its lowest level since the pandemic began.

Australia continues to struggle against its ongoing coronavirus situation as fewer than 23 percent of the population are fully vaccinated against the virus.

Victorian Premier Daniel Andrews commented on the ongoing coronavirus outbreak and vaccine struggle, saying:

‘Some of the hesitancy that we all seem to be talking about is perhaps not as real as we thought it was. I reckon there are millions of Victorians that are keen to get vaccinated and are just waiting for the supply to turn up, as am I.’

‘The biggest challenge at the moment is this is running wild in other parts of the country and while ever we have some movement that is essential … there will always be some risk that it gets out. That’s why we wish our friends in Sydney all the best: their problem is our problem.’

Pound Australian Dollar Exchange Rate Outlook: Australian Business Confidence in Focus

A lack of economic data from the UK will see Pound investors continuing to focus on any further domestic coronavirus developments in the coming days.

Australia Dollar traders will be focusing on the latest Australian business confidence index to drive movement in the ‘Aussie’.

If business confidence improves the Australian Dollar could find some much needed support during tomorrow’s session.

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