GBP/AUD continues its bullish trend on Wednesday, though at a slower pace. The pair is now trading at 1.9082, up 0.11% as of 6:30 AM UTC.

Last week, the pound was under pressure after several Bank of England (BoE) policymakers, including Governor Mark Carney, hinted that they would support an interest rate cut as early as at the next meeting later this month, citing a weakening economy. Indeed, a series of disappointing economic data seemed to support the central bank’s stance. However, recent labor market data helped the sterling resist pressure from rate cut discussions. The UK government said yesterday that the number of employed people rose 208,000 in the three months to November, while economists expected an increase of 110,000.

Elsewhere, the Aussie faces massive pressure after the Melbourne Institute and Westpac Bank data showed that Australian consumer sentiment declined again in January, driven by struggles with the bushfires that killed 29 people and millions of animals. The index fell 1.8% this month compared to December, when it dropped 1.9%. In annual terms, it tumbled by 6.2%.

Westpac chief economist Bill Evans stated:

Confidence has been further eroded by the bushfires but because the index was starting from such a modest level it was likely that the fall in confidence would be less than some may have expected.”

What’s more troubling is that the bushfires don’t go away. After several days of rains and lower temperatures, the residents of the capital city of Canberra are evacuated on Wednesday after reports that a bushfire started near the airport. Australian authorities told people to stay away from the east of Canberra.

Besides fears of returning wildfires, the Aussie is declining on concerns over the outbreak of a new and mysterious coronavirus in China. The virus has killed the sixth person in China and has spread from Wuhan to Beijing, Shanghai, and other cities. Several cases were also reported outside China, including in the US. Australia is particularly concerned as China represents the largest source of tourists, and this is especially challenging amid the Lunar New Year holiday that started this week. 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.