australian-dollar-coins - AUD
  • Pound (GBP) under pressure after data reveals that the coronavirus hit to the UK economy was worse than forecast in Q1,
  • Brexit talks and Boris Johnson’s fiscal stimulus in focus
  • Australian Dollar (AUD) lower on building virus risk
  • Pound Australian Dollar exchange rate trades comfortably below 1.80

The Pound Australian Dollar is edging +0.1% higher at 1.7934 after the pair settled on Monday -0.4% at 1.7915.

The Australian Dollar is under pressure as risk aversion once again dominates amid persistent coronavirus fears. The World Health Organization has warned that the worst is yet to come in the coronavirus pandemic. The warning comes as areas of the US roll back reopening measures, while the UK and parts of Europe re -impose localised lockdown measures in an attempt to stem the spread of flare ups.

In Australia, Victoria continues to see the daily number of coronavirus cases rise, meanwhile thousands of residents have been ordered back into lockdown as the state battles a second wave.

Aussie Dollar losses are being capped following encouraging Chinese data overnight. Official data revealed that Chinese manufacturing activity expanded in June at 50.9, ahead of the 50.4 forecast. The level 50 separates expansion from contraction. The numbers combined with yesterday’s improving industrial profits numbers show that the economic recovery in China is gaining traction.  This is offering some support to the risk sensitive and China proxy, the Australian Dollar.

The Pound is trading broadly lower versus its peers, although higher versus the riskier Aussie Dollar. The Pound is out of favour after data revealed that the UK economy slowed by the most in 40 years in the first three months of this year, as consumers slashed their spending in the first few days of lockdown.

GDP dropped -2.2% in the first quarter of the year compared to the previous quarter according to the Office of National Statistics, worse than the -2% contraction originally expected.

Boris Johnson will set out his plan to get the UK economy moving later today. He is expected to announce fiscal stimulus to the tune of £5 billion aimed particularly at infrastructure developments. 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.