- Australian Dollar (AUD) rises amid a positive tone in equity markets
- Concerns over rising covid cases could cap Aussie Dollar strength
- Pound (GBP) broadly higher as Leicester eases localised lockdown restrictions
- Boris Johnson plans return to normality, although top firms are not planning on returning workers to their desks soon
After a rare day of gains in the previous session, the Pound Australian dollar (GBP/AUD) exchange rate is trading on the back foot once again. The pair settled +0.28% at 1.8004. At 07:15 GBP/AUD trades -0.2% at 1.7966.
The pair is on track to lose 1% across the week after two straight weeks of gains.
With no data on the economic calendar from Australia or China, the risk sensitive Aussie Dollar is being driven by global sentiment. Hopes of stimulus from governments across the globe is boosting the mood in the market, overshadowing rising coronavirus numbers in the US and in the state of Victoria in Australia.
Victoria has posted the biggest ever daily increase in coronavirus cases, reporting 428. Whilst the US recorded a record 70,000 new cases. Concerns that rising covid numbers could knock the economic recovery could prevent the Aussie Dollar for extending gains much further.
The Pound is trading lower versus the Australian Dollar but is pushing higher versus other major peers. The easing of lockdown restrictions in Leicester, in the midlands, as coronavirus infections come under control is helping to under pin the Pound. The first localised lockdown in the UK brought the flare up quickly under control bringing a sense of relief.
Also supporting the Pound is news that Prime Minister Boris Johnson has pledged an additional £3 billion to the NHS to support it through a potentially challenging winter.
Boris Johnson will also set out a plan to guide the UK out of the deepest recession in 3 centuries and return to normality. The plan which includes office works returning to their desks. However, with the top 10 firms in the Square Mile in the City of London saying that they could only bring back 20% or fewer workers to the office, Boris could struggle to meet his objective.
