August 24, 2021 - Written by John Cameron
STORY LINK GBP/AUD Forecast: Pound Australian Dollar Exchange Rate Weakens as 'Aussie' Soars
The Pound Australian Dollar (GBP/AUD) exchange rate has weakened today on an absence of economic data from the UK to support GBP exchange rates.
At the time of writing the GBP/AUD pairing are trending around the AU$1.8951 level as the ‘Aussie’ finds support on the back of risk-on trade.
Pound (GBP) Dips on Lack of Economic Data
The Pound has dipped against the Australian Dollar throughout the day as a lack of economic data did little to support Sterling appeal.
A lack of data has seen the Pound looking towards coronavirus developments from the UK to drive movement in GBP exchange rates throughout the day.
It comes as the Office for National Statistics (ONS) report on the latest coronavirus figures from the UK.
Coronavirus-related deaths have risen to their highest level since March as cases across the UK remain around the 30,000 daily level.
First Minister of Scotland, Nicola Sturgeon is expected to give a scheduled coronavirus briefing later today as cases rise across Scotland.
Scotland’s national clinical director Prof Jason Leitch this morning stated:
‘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.’
Australian Dollar (AUD) Strengthens on Risk-On Trade
The Australian Dollar has soared today as a pullback in the US Dollar and risk-on trade pushed the risk-correlated ‘Aussie’ higher.
Though Australia continues to deal with a coronavirus outbreak across the country, a more positive tone surrounding the FDA’s full approval of the Pfizer vaccine has bolstered equity markets.
The Australian Prime Minister, Scott Morrison, today continued to reiterate that Australian’s will need to learn to live with the virus:
‘Mr Speaker, the national plan provides ... the safety for Australians to move forward out of the lockdowns that we see before us now, which are necessary for this time. But enables them to see past the lockdowns, it enables them to see their ability to live with the virus in the future.’
‘The national plan means we will get out of this, Mr Speaker, we will move forward. Our plan is to get there and we need to support and stick to that plan, not stand in the way ... like those opposite.’
Pound Australian Dollar Exchange Rate Outlook: UK CBI Distributive Trades Eyed by Investors
For Pound investors, tomorrow investors will keep an eye on the latest CBI distributive trades survey from the UK.
If the survey softens as forecast the Pound could find itself weakening against many of its major rivals in the coming.
Australian Dollar traders will continue to keep an eye on the global market mood alongside domestic coronavirus developments in the coming days.
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TAGS: Pound Australian Dollar Forecasts