GBP/USD: Dollar Jumps vs Pound Amidst US - China Trade War
  • Concerns over civil liberties in Hong Kong rise as China tables security law
  • Developments aggravate fragile US – Sino relations, dragging on risk sentiment
  • GBP trades mixed in quiet, public holiday trading
  • At 09:00 UTC, GBP/AUD +0.1% at 1.8626 >> Real time exchange rates

The Australian Dollar is trading on the back foot versus the Pound at the start of the new week after three straight weeks of gains. The Australian Dollar rallied +1.3% at 1.8626 versus the Pound across the previous week, on broad Pound weakness.

At 09:00 UTC, GBP/AUD is trading +0.1% 1.8653. This is towards the upper end of the daily traded range of 1.806 – 1.8670 amid rising US – Sino attention and as the UK remains closed in observance of the Spring public holiday.

This week is a quiet week for the Australian economic calendar, leaving sentiment and risk appetite in charge of the risk sensitive Aussie Dollar. The next monetary policy decision is not due from the Reserve Bank of Australia until June 2.

Risk sentiment has slipped lower amid growing concerns over cooling relations between US – Sino and civil liberties in financial hub Hong Kong.

Thousands of protestors took to the streets in Hong Kong as China formally tabled a national security law for Hong Kong and Macau.

The move came after US senior officials warned that Beijing’s plans to impose security laws on ex-British colony Hong Kong could lead to US sanctions, worsening already fragile relations between US and China and hitting demand for the perceived riskier Australian Dollar.

Sterling is trading mixed versus its major peers in a subdued start to the week, as members of Prime Minister Boris Johnson’s Conservative party call for the resignation of a top aid after he violated travel restrictions in the lockdown period.

The UK economic calendar is sparse this week after a full week of releases last week. Jobless claims, inflation and retail sales data all surprised to the downside last week. Service sector and manufacturing sector PMI data was better than what analysts expected but showed the sectors to remain deep in contraction amid the coronavirus crisis. All in all, the data painted a grim picture of the UK economy.

Given the quiet economic calendar investors will remain focused on the easing of lockdown measures and Brexit ahead of a key June deadline for trade talks. 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.