• Lack of progress in latest Brexit talks weighs on Pound
  • BoE Chief Economist fans speculation of negative interest rates
  • Aussie Dollar rallies amid growing optimism of economies recovering from covid-19
  • At 09:30 UTC, GBP/AUD -0.2% at 1.8783 >> Real time exchange rates

The Pound continues to nosedive against the Australian Dollar for a sixth straight session as the new trading week begins. The Pound Australian Dollar exchange rate fell 0.7% across the previous week, settling at 1.8871

At 09:30 GBP/AUD is trading -0.2% at 1.8783, a fourth month low as an improved market mood boosts the Australian Dollar, whilst Brexit fears return to haunt pound investors coupled with fears of negative interest rates.

Both the EU Brexit negotiator Michel Barnier and his UK equivalent David Frost acknowledged difficulties in the latest round of Brexit talks. The penultimate round of negotiations before a key deadline in June.

Brussels wants the UK to agree to EU rules in order to have access to the single market. Boris Johnson’s team is rejecting the idea. The clock is ticking to the June 2nd deadline, after which neither side can ask for a transition period extention.

Adding pressure to the pound, Chief Economist at the Bank of England, Andy Haldane, fuelled speculation of negative interest rates in an interview over the weekend. He confirmed that they are a tool that policy makers at the central bank would consider. His comments come after data showed that the UK GDP contracted -5.8% month on month in March.

The Australian Dollar is trending higher amid a broad risk on sentiment in the financial markets. Stocks in Asia and Europe are pushing higher amid growing confidence that the worst of the coronavirus pandemic has now passed.

Investors are shrugging off elevating US – Sino trade tensions and are focusing on the reopening of economies across the globe. China, Australia’s largest trading partner is expected to increase demand for Australian exports, particularly metals as its economy starts to fire up again after the coronavirus pandemic.

Tensions between US and Australia could limit gains in the Australian Dollar going forwards after President Trump ramps up pressure on China by banning mobile giant Huawei from access to American technology. 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.