The British pound is lower against the Australian dollar on Friday.
- China upping the economic stimulus with $11.2
- Wuhan province in China on red alert after floods, effecting supply chains
- PM Boris Johnson says other restrictions to be reviewed in November
- BOE’s Bailey sees economic activity return, not in some sectors
GBP/AUD was down by 57 pips (-0.31%) to 1.7939 as of 4pm GMT. This week the British pound Aussie exchange rate has declined -1.2%
The currency pair is finishing the week the way it started with more losses, taking it to fresh lows for the week, and again sub-1.795. Yesterday it rose 0.28%.
GBP: Johnson to review other restrictions in November
In a webinar organised by the Bank of England, Governor Andrew Bailey said that he was starting to see a rebound in the UK bu that not all sectors were participating. The buying and selling of homes and cars had increased again after the easing of lockdown measures but tourism and hospitality, which employ a lot of low paid workers have not.
In terms of the restrictions still in place, Prime Minister Boris Johnson said the government will review them in November, for total return to normality. Johnson also announced new powers for local authorities. MPs can now order whole sectors within a region to stop business or order people to stay home.
AUD: China economic stimulus boost to Aussie
Talk of more stimulus in China via infrastructure spending the China Securities Journal may have shielded the Aussie dollar from more bad news on the coronavirus.
The state of Victoria has been in lockdown for over a week to fend off another national wave of infections. However, there has been new cases in Australia’s mot populous state of New South Wales so some restrictions will be reemployed there next week, likely hindering the economic recovery.
