• Pound (GBP) lower as business confidence drops to lowest level in 12 years
  • Australian Dollar (AUD) shrugs off worsening US – Sino relations
  • Australian & China manufacturing PMI on Monday
  • At 09:15 UTC, GBP/AUD is trading -0.3% at 1.8500 >> Real time exchange rate

After a brief show of weakness in the previous session, the Australian Dollar is resuming its climb higher versus the Pound on Friday. The Aussie Dollar settled on Thursday -0.3% at 1.8563, however across the week, the Australian Dollar is set for a 0.7% gain.

May has been another strong month for the currency which is on track for a 4.3% rally versus sterling, adding to a 4.4% surge in the April.

Today at 09:15 UTC, GBP/AUD is trading -0.3% as it tests 1.8500. The pair is trading at the lower end of the daily traded range.

The Pound is on the decline as investors weigh up the reopening of the British economy against lingering Brexit concerns and disappointing data.

Figure from Lloyds Bank revealed that UK business confidence fell to its lowest level since the 2008 financial crisis in May. Most firms said that trading conditions remain difficult, despite capturing the period since the government started easing lockdown measures.

The Pound has been receiving some support from the government reducing lockdown measures. As from Monday, groups of 6 are allowed to meet outside, respecting social distancing rules. Next week car dealerships and street markets can open, with all shops back trading by 15th June.

Whilst reopening the economy is underpinning the Pound, Brexit fears continue to dampen demand for sterling. EU Trade Commissioner Phil Hogan suggested that the British government had given up on a deal, suggesting that a cliff edge Brexit is very much on the cards.

The risk sensitive Australian Dollar is pushing higher despite elevated tensions between US and China. The currency has broadly shrugged off cooling relations between the two powers, even ahead of Trump’s response to China in a speech today. Instead the Aussie Dollar continues to focus on the broader risk on backdrop of global economies reopening after the coronavirus lockdown.

Whilst there is no high impacting Australian economic data today, investors will look ahead to the release manufacturing PMI on Monday from both Australia and China, Australia’s principal trading partner.

Currencylive.com is a news site only and not a currency trading platform.
Currencylive.com 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 currencylive.com do not represent our views.