Pound Sterling Australian Dollar (GBP/AUD) Exchange Rate Muted as Australia Records 19 Coronavirus Deaths Today
The Pound Sterling Australian Dollar (GBP/AUD) exchange rate remained flat on Monday. This left the pairing trading at around AU$1.8259.
The ‘Aussie’ continued to remain under pressure after the Reserve Bank of Australia downgraded its economic outlook.
Added to this, Prime Minister Scott Morrison said internal border closures were unlikely to be lifted before Christmas.
This came after Australia recorded a record-high daily increase in coronavirus deaths today. 19 people in Victoria have died in the past 24 hours.
However, a slowdown in new cases boosted hopes that a second wave in the state of Victoria have peaked. Only 337 people have been diagnosed with the virus, the lowest one day rise since the end of July.
Speaking to reporters, Michael Kidd, Australia’s deputy chief medical officer said:
‘This is an agonising day for the members for the 19 families who have lost a loved one to COVID-19 today.
‘We are now seeing the first promising signs of a significant decline in the number of cases.’
GBP/AUD Flat Ahead of US-China Trade Talks
Both the Australian Dollar and Pound remained under pressure this morning as the safe-haven US Dollar made gains in early London trading.
Investors focused on fiscal stimulus in the US and signs of US-China tensions ahead of major trade talks later this week.
Senior officials from the United States and China are due to meet on 15 August to review their Phase 1 deal. Officials are also likely to air mutual grievances which could dampen risk appetite.
Markets were offered some support after US President Donald Trump signed executive orders this weekend. This partially restored increased unemployment benefits for millions of Americans.
According to Commerzbank’s analyst, Thu Lan Nguyen:
‘A little stimulus is simply better than none at all. At least that is how the market seems to see it, which is why the US Dollar is trading moderately stronger.’
Pound Australian Dollar Outlook: Business Confidence and Unemployment in Focus
Looking ahead to tomorrow’s session, the Australian Dollar (AUD) could suffer losses against the Pound (GBP) following the release of the latest confidence data.
If NAB’s Business Confidence is expected to contract, which would leave the riskier ‘Aussie’ under pressure.
Meanwhile, Sterling could edge lower following the release of the latest UK employment data.
Markets expect data to show the country’s unemployment rate has jumped higher in June due to the coronavirus crisis. Average wage data is also expected to disappoint markets.
However, if July’s claimant count reveals the number of people claiming unemployment benefits has fallen more than expected, it will boost GBP. This will allow the Pound Australian Dollar (GBP/AUD) exchange rate to make slight gains.
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