australian-dollar-coin - AUD

The British pound was sharply higher against the Australian dollar on Friday thanks to positive UK economic data and lower government borrowing figures in the lead up to the UK budget in March.

The Aussie continues to fall foul of global sentiment towards the coronavirus outbreak which took another turn for the worse after a big increase in the number of cases in South Korea.

GBP/AUD was up by 138 pips (+0.71%) to 1.9603 with a daily price range of 1.9452 to 1.9623 as of 3.30pm GMT.

GBP/AUD added to an early move higher, adding gains throughout the day before finding resistance near 1.96. The daily gains add to a weekly tally of

AUD couldn’t follow through on a rebound and prolapsed back to levels last seen early in the month

The softening in Australian unemployment figures has economists predicting when not if the Reserve Bank of Australia will cut interest rates. Analysts at ANZ said “Weakness in the AUD may provide some offsetting stimulus, but we think an RBA rate cut in Q2 remains more likely than not.”

Little explanation for the weakness in the Australian dollar can be found in the price of gold. The two assets at one time were highly correlated because of Australia’s large gold and other metal exports. However the correlation has completely broken down with gold hitting a 7-year high this week while the Aussie struck its lowest in a decade.

The British pound

Improved PMI data saw economist increase estimates for first quarter growth in the United Kingdom and encouraged Sterling buyers to come out of the woodwork on Friday. All week traders have taken any bounce in the pound after better data as any opportunity to fade the currency in expectation that trade uncertainty means the trend will be lower. Markit manufacturing PMI lifted to 51.9, up from the 50 in the previous month and beat estimates of a contraction to 49.7. There was a small decline in the service sector however it remains in healthy expansion at 53.3. 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.