• Fears of second wave of coronavirus infections drag on risk sentiment & the riskier Australian Dollar (AUD)
  • Weaker than forecast Chinese industrial output & retail sales add to depressed mood
  • Pound (GBP) trades mixed as non-essential shops reopen
  • At 08:15 UTC, Pound Australian Dollar exchange rate (GBP/AUD) trades +0.6% at 1.8403

The risk sensitive Australian Dollar is moving lower versus the Pound, extending losses from the previous week. The Aussie Dollar lost 0.5% versus sterling last week, its first losing week in 5.

At 08:15 UTC, GBP/AUD is trading +0.6% pushing back over 1.84 as fears over a second wave and weak Chinese data dominate.

Fears over a resurgence of coronavirus cases in the US and Beijing are weighing on risk sentiment and the perceived riskier Australian Dollar. 24 US states have seen a steep increase in covid-19 cases, with Florida seeing a record rise.

An outbreak of around 100 coronavirus cases in Beijing is also unnerving investors raising fears of a second wave in China, the world’s second largest economy. Lockdown is already underway in parts of the city to prevent the spread further.

Chinese data did little to boost sentiment, with industrial production increasing 4.4% in May compared to the year previous, falling short of the 5% forecast. Chinese retail sales -2.8% year on year in May. Whilst this was a vat improvement on April’s -7.5% decline, it was still short of the -2% decline forecast. The data shows that domestic demand is ramping up more slowly that hoped.

China is Australia’s largest trading partner. The Australia Dollar is referred to as a China proxy. The weaker Chinese data is also dragging on the Aussie Dollar.

Looking ahead, investors will turn their attention to the release of the minutes from the Reserve Bank of Australia’s latest policy meeting.

The Pound is trading mixed. The reopening of non-essential shops is offering some optimism that the UK economy will start to reignite after contracting -20% in April. However, Brexit concerns continue to dampen the mood for towards the Pound.

Boris Johnson is expected to hold virtual talks with European leaders in an attempt to break the Brexit impasse. These talks could make or break the chances of an EU – UK trade deal and will be key for the Pound’s direction going forward.

With no high impacting UK economic data due for release today, investors will look towards tomorrow’s unemployment numbers. 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.