- Lockdown measures will be eased further from 4th July
- Concerns are growing over the reduction of the 2 meter rule in Britain, weighing on the Pound (GBP)
- Australian Dollar (AUD) supported by reopening optimism, whilst second wave fears keep gains in check
- Pound Australian Dollar exchange rate (GBP/AUD) hovers around 1.8050
The Australian Dollar is resuming its move higher versus the Pound, after slipping in the previous session. The Australian Dollar settled -0.1% lower in the previous session at 1.8065. This was the first losing session for the Aussie Dollar versus Sterling in 5 sessions. Furthermore, the Australian Dollar has only lost ground to the Pound in 2 of the past 9 sessions.
At 07:15 UTC, GBP/AUD trades -0.04% at 1.8054, up from the fresh 9 month low of 1.7915 reached in the previous session.
The Pound is trading broadly lower versus its peers as investors continue digesting the latest easing of lockdown measures. Yesterday, Prime Minister Boris Johnson announced that hairdressers, theme parks, pubs and restaurants can reopen as from early July, in an attempt to salvage the battered UK economy.
Boris Johnson also reduced the two-meter rule to one meter, a move which earned him criticism from scientists. Halving the 2-meter rule reportedly increases the risk of catching covid-19 by 10 fold. Fears that the reopening of the economy could spark a second wave is dragging on the Pound.
Brexit concerns continue to linger ahead of Brexit trade talks next week. The British government is expected to push for market access. However, concerns are rising that the two sides will miss the end-June deadline for assessing future cross border trade for financial services, a key part of the UK economy.
There is no high impacting UK data due for release today, leaving he Pound vulnerable to risk sentiment.
The Australian Dollar is pushing tentatively higher with a mild risk on climate supporting the perceived riskier currency.
Optimism surrounding the global economic recovery is underpinning the Aussie Dollar, particularly after strong PMI figures in the previous session. Data showed that activity in the Australian service sector returned to growth in June and a contraction in the manufacturing sector slowed.
However, coronavirus news it not good. The number of cases across the globe is accelerating according to the World Health Organisation. Increasing numbers in North and South America are a particular concern and are keeping risk sentiment in check.