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

The Sterling-Aussie exchange rate is on course for its 18th fall in 19 days and made another 3-month low.

A shock rise in Australian inflation to a five-year high despite saw the Aussie jump to the detriment of the pound.

British pound versus Australian dollar was down by 106 pips (-0.55%) to 1.9026 as of 4.30pm GMT.

GBP/AUD descended across the day, dropping to just above 0.90 for the first time since January 21. Yesterday the exchange rate fell -0.44%, and is down -1.75% on the week.

GBP: British pound drops to a fresh 3-month low

Traders are seemingly pricing in a better pandemic outcome in Australia and ultimately tighter monetary policy in Australia than in the United Kingdom. That was reflected today in the response to news of a positive trial result for Gilead’s antiviral drug Remdesivir. The drug showed that it helps improve symptoms of patients in the early stages of infection.

While both countries have a heavy reliance on exports for economic growth, Australia looks in a better position to benefit from any turnaround in the global economy. This can only helped by a possible treatment for the coronavirus.

The pound looks like it may be a victim of its own success. Reports of rising numbers of corporate hedging strategies against further declines at key levels like 1.25 in GBP/USD and 1.15 in GBP/EUR means any new buyers find corporate sellers.

AUD: Australian CPI rises to 5-year high

The expectation that quantiative easing (QE) by cental banks will end sooner in Australia than in the United Kingdom got a shot in the arm on Wednesday when consumer price inflation in expectation blew higher by 0.5% to 2.2% year-over-year, the highest since 2015.

Actions from the Reserve Bank of Australia would suggest that this could be a high point for inflation as the economy falls into a recession because of the coronavirus, dragging prices lower. However, Australian prices will go into this recession in a position of strength, meaning they are likely to come out of the other side quicker.