gbp-aud-forex

The British pound was narrowly higher against the Australian dollar on Monday as fears of global pandemic hit risk assets, including the Australian dollar. US Treasury Secretary calling a US/UK trade deal “a priority” boosted the pound but gains have faded before the onset of EU/UK trade negotiations next week.

GBP/AUD was up by 13 pips (+0.08%) to 1.9561 with a daily price range of 1.9520 to 1.9652 as of 2.30pm GMT. The currency pair hit its highest since early February, but the gains were faded, and the price fell into support at 1.955.

The AUD slows down amid negative outlook for the Australian economy

The pound gained +0.72% last week against the Australian dollar, bolstered by a deteriorating outlook for the Australian economy thanks to the COVID-19 outbreak and increasing calls for the Reserve Bank of Australia (RBA) to cut interest rates. A sharp rise in the number of cases in South Korea prompted Australia to raise its travel advisory to South Korea and Japan. South Korea cases of the coronavirus now total 833. In mainland China there is now a total of 77,150 infected with 2592 deaths as a result.

Australia’s S&P/ASX200 slumped over 2% on Monday amid fears the coronavirus would be a bigger detriment to the earnings of Australian business than previously thought. The risk-off sentiment in markets has sent the price of gold to fresh 7-year highs while the Aussie has gone into reverse to 11-year lows against the dollar.

GBP strong after Mnuchin’s comments on US-UK trade

Weekend comments that US-UK trade talks are a priority in 2020 according to US Treasury Secretary Steve Mnuchin have bolstered the British pound. The Daily Telegraph has been reporting that the positive developments from the G20 mean the UK will begin parallel US trade talks in next 2 weeks. Prime Minister Boris Johnson will reportedly publish “red lines” that push back against US demands for access to the NHS this week. Simultaneous trade talks will give the UK negotiators a stronger hand when dealing with the EU when trade talks officially kick off at the start of March.


Currencylive.com is a news site only and not a currency trading platform.
Currencylive.com 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 currencylive.com do not represent our views.