GBP/AUD: Traders Keep an Eye on Brexit, Bushfires

GBP/AUD continues to trade sideways since yesterday, though it maintains the bullish mood that had lasted for several days. Currently, the pair is trading at 1.9110, up 0.03% as of 6:25 AM UTC.

Traders are closely watching the Brexit developments and the bushfires in Australia.

UK Prime Minister Boris Johnson is about to meet with European Commission (EC) President Ursula von der Leyen in London later today. He will tell her that the UK would not extend the transition period beyond December 2020. An amendment in this regard was introduced in the updated Withdrawal Agreement Bill (WAB).

Johnson won a surprising majority in the national election last month by pledging to “get Brexit done” on January 31. While the UK is set to leave the European bloc within weeks, the next task is to reach an agreement with the EU within 11-month. This tight timeline is not welcomed by European leaders and the opposition in Britain.

Nevertheless, the PM doesn’t want to step back. Johnson’s office recently released a statement ahead of EC chief’s visit, which said that the PM would “stress the importance of agreeing a confident and positive future relationship by the end of December 2020.”

“The prime minister will likely underline that the upcoming negotiations will be based on an ambitious FTA (Free-Trade Agreement), not on alignment,” the statement added.

Von der Leyen has previously criticized Johnson for trying to conclude such a complex deal within a short time.

UK Brexit minister Stephen Barclay and European Brexit negotiator Michel Barnier will also be present at the meeting.

Elsewhere, the Aussie is under pressure amid ongoing wildfires in Australia. Moody’s Analytics said that the economic damage from the bushfires is about to exceed the record $4.4 billion registered during the Black Saturday fires in 2009.

The rating agency concluded that the fires would affect consumer confidence and harm industries like farming and tourism.

So far, the fires have affected about 8.4 million hectares across the country, compared with the 450,000 hectares hit by Black Saturday. 25 people have died in the current fires. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.