The British pound (GBP) is flat against the Australian dollar (AUD) on Wednesday.

  • US looking at $3.1 billion new tariffs on Europe
  • Europe considering US travel ban when external border opens
  • RBNZ eyes extra monetary stimulus
  • Pound-Aussie exchange rate is -0.11% this week

GBP/AUD was down by 22 pips (-0.11%) to 1.8894 as of 4pm GMT.

The currency pair fluctuated between 1.80 and 1.81 in keeping with similar directionless trading yesterday when it rose just +0.11%.

GBP: Pound acting more like EM currency than major

The pound-Aussie exchange rate has been headed overwhelmingly south lately, dropping in six of the last nine trading days.

Bank of America has described the British pound as “an emerging market currency in all but name.” The bank’s currency analyst Kamal Sharma has contrasted key financial metrics for the way the pound trades and concludes it is more like that of an emerging market than part of the G10 group of major currencies. He takes particular note of higher implied volatility and lower liquidity – which mean investors expect larger price moves but the volume of trades has fallen.

AUD: Aussie pressured alongside Kiwi dollar after RBNZ

The Kiwi dollar fell after the Reserve Bank of New Zealand (RBNZ) indicated more stimulus might be needed. The fall in the Kiwi acted a drag to the Aussie since the pair often move in sync. The RBNZ is already discussing the ‘pros and cons of expanding its LSAP’ (asset purchases) program and might look to use new tools such foreign asset purchases. The conclusion was that the New Zealand economy is improving but that ‘risks are tilted to the downside’.

Similar to Germany but on a much smaller scale than the United States, Australia has seen a small resurgence of coronavirus cases. There have been double-digit increases in coronavirus cases for the past eight days, community transmission has been rising and the ‘reproduction rate’ has risen to 2.5. The sense in markets is that the rising cases will not disturb the economic reopening, but it is a risk to monitor. 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.