The British pound is lower against the Australian dollar on Friday.
The losing streak for Sterling versus the Aussie continues, now down 15 of the last 16 days.
The relative lack of progress in easing lockdown measures in the UK versus Australia has been contributing to the drop in the exchange rate. Markets are rewarding the country that has seemingly tackled the crisis best.
A new record monthly loss in UK retail sales and inconclusive Brexit talks added to weakness in the pound.
GBP AUD was down by 32 pips (-0.18%) to 1.9354as of 6.30pm GMT.
A mid-day pop to 1.945 was faded and GBP/AUD slid back beneath 1.935. Losses for the week stand at -1.44%.
GBP/AUD: British pound knocked by weak data and trade talks
The inconclusive result from post-Brexit trade talks didn’t cause any big gyrations in the pound.
Adding to the downside pressure on the pound was the worst monthly fall in retail sales on record. UK March retail sales crashed -5.1% m/m while Retail sales (excluding autos, fuel) dropped -3.8%.
The UK reported a rise in coronavirus fatalities on Friday after two days of declines. The death toll stands at 19,506 with total cases at 143,464. Of all the people tested yesterday, a large 29% of them were positive. UK health minister, Matt Hancock reiterated again on Friday that it is still too soon to change lockdown measures.
Australian dollar gains as Australia flattens the curve
Australia showed more signs that it is winning the battle against the coronavirus on Friday, reporting just 17 new cases. The slight rise over the 8 new cases reported on Thursday is being attributed to a ramp up in testing. In New South Wales, anybody feeling virus symptoms can take a free virus test.
The drop in cases has prompted Australians to head out to the beach for some last Summer sunning, so much so that Coogee beach in Sydney needed to be closed because the overcrowding meant social distancing rules weren’t being followed.
The Australian economy stands to benefit as Australian’s come out of lockdown, soon to be allowed back to work under new plans from the government.
