• Stalled Brexit trade talks drag on Pound (GBP)
  • Australian Dollar (AUD) shrugs off dismal retail sales -17.7% in April
  • Chinese continue to buy soyabeans helping US – Sino relations & risk sensitive AUD
  • At 09:15 UTC, GBP/AUD is trading at 1.8127

The Australian Dollar is extending gains versus the weaker Pound for a fifth straight session on Thursday. The Australian Dollar struck an 8-month high of 1.8059 in the previous session before closing the session +0.2% at 1.8170.

At 09:15 UTC, GBP/AUD is trading -0.2% at 1.8127. This is at the lower end of the daily traded range of 1.8125 – 1.8197 amid Brexit nerves and despite dire Australian data.

Brexit continues to drag on demand for sterling. Brexit trade talks continue across the week, however little if any progress has been made as the EU and the UK are struggling to agree on key sticking points such as UK fisheries and the broader approach to trade.

The lack of mention of the service sector in the trade negotiations is also unnerving investors, particularly given that the service sector is the UK’s dominant sector. A think tank based at Kings College warned that this could leave a large part of the UK economy at risk of profound damage.

Adding to the Pound’s woes, Bank of England governor, Andrew Bailey has pressed banks to step up their no deal Brexit preparations.

The risk sensitive Australian Dollar has outperformed the broader market over the past month and weeks owing to the growing belief that the worst of the coronavirus crisis is over and the global economy is on track to recover across the coming weeks and months.

This optimism is boosting the Aussie Dollar despite dismal data from Australia. Retail sales in April recovered slightly from the -17.9% initial estimate, to -17.7%. Given that the preliminary retail sales reading was already out, the market reaction to the revision was limited.

US – Chinese tensions have been a source of concern for Australian Dollar investors. Recent developments, however, have been supportive, with China confirming that it is continuing its purchases of soyabean from the US. Rumours had been swirling that China was halting some US farm imports, putting the US – China trade deal at risk. 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.