The British pound was higher against the Australian dollar on Friday.

  • Trump says phase 2 China trade deal unlikely at this point
  • China to take countermeasures over US sanctions on Xinjiang issue
  • Australia restricts number of citizens returning amid outbreak
  • UK Economy will shrink by 10% – Moody’s

GBP/AUD was up by 81 pips (+0.45%) to 1.8177 as of 4pm GMT. The exchange rate is higher by 1.08% this week.

The currency pair jumped to a 3-week high on Friday, coming just shy of 1.82. Yesterday it was higher by +0.22%

GBP: Moody’s says UK GDP to slump double digits

Rating’s agency Moody’s said Britain will have the worst economic contraction among developed countries, likely falling 10% this year. Moody’s as part of a review of the UK’s sovereign credit rating  said that after the l£30 billion stimulus announced by Chancellor Rishi Sunak this week, UK debt as a proportion of GDP will rise by 24%.

But pound-traders brushed off the already factored in economic consequences of the pandemic and took heart from the proactive fiscal response in the UK via this week’s July mini budget and better Brexit relations.

On Friday EU Council President Charles Michel called for a 5 billion euro “adjustment reserve” fund to counter unforeseen consequences of Britain’s exit from the EU.

AUD: Aussie falls for second week vs. pound

Traders have taken a more cautious outlook on the Aussie dollar this week, which is hovering just below 10-month highs over Sterling.

The currency has been heavily overbought since global markets recovered from the March panic and is taking a pause amid rising tensions with China and between China and the United States. Today China threatened to counter the latest US sanctions on top Chinese officials with their own ‘countermeasures’. US President Trump commented that a phase two trade deal was unlikely.

Prime Minister Scot Morrison said Friday Australia will halve the number of citizens allowed back into the country each week. Australia is fending off a second wave of the pandemic, with cases in Melbourne rising by 288 in the last 24 hours after a month of no new cases. 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.