The British pound is lower against the Australian dollar on Monday.

The currency pair is swiftly unwinding gains from late last week which now look like a short-term relief rally in the pound.

The Sterling – Aussie cross has been range-bound near the 2.00 level with both currencies pressured by risk-off moves in the market and by the announcement of new QE programs by the respective central banks last week.

GBP/AUD was down by 214 pips (-1.07%) to 1.9859 with a daily range of 1.9841 to 2.0360 as of 4.30pm GMT.

The currency pair started the day with a positive tone, trading as high as 2.03 but then turned underneath the 2.00 midpoint to hit 1.985. Last week the exchange rate gained 1.11%.

British pound lower as BOE buys gilts

US futures started the day limit down 5%, surged on the news of new Fed easing measures and then slid as the number of virus cases jumped in New York.

Markets are still judging the economic support package announced by UK Chancellor Rishi Sunak last Friday. It includes an unprecedented plan to pay 80% of staff wages up to £2500 to businesses affected by the coronavirus.

The measures come ahead of an expected ‘full lockdown’ where many companies will be left without any customers in a forced shutdown of non-essential businesses.

Australian dollar rebound capped by QE

The Aussie benefitted from weakness in both the US dollar and Sterling on Monday but gains were capped by fragile market sentiment. The overall trend still looks to be lower in the Australian currency because of the risks the coronavirus poses to Australia and global trade.

Australia’s state governments imposed new local lockdown measures on Sunday, closing off inter-state travel. The National government had already announced the closure of pubs and restaurants.

A major increase in fiscal spending is apparently on the way but has not as yet materialised so while that remains the case, chances are that the Reserve Bank of Australia will have to fill the void with more monetary easing which stands to weaken the Aussie. 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.