The GBP to AUD interbank exchange rate has strengthened, in part because of reports that a coronavirus is spreading through China. The virus, which originated in the southern city of Wuhan, has now reached major cities such as Beijing and Shanghai.
This has weakened the Australian dollar, first because China is Australia’s closest trading partner. If the coronavirus weighs on China’s economy, Australia might be affected too.
Also, if China imposes a quarantine on its citizens, fewer Chinese tourists might visit Australia this year, which might also slow the economy Down Under.
GBP to AUD rate rises as UK job market outperforms in December
What’s more, another partial explanation why the sterling vs Australian dollar interbank exchange rate has gained is because the UK’s job market outperformed last month, said trusted statistics yesterday.
According to the Office for National Statistics (ONS), UK unemployment held at 3.8% in the three months to December, its joint-lowest since the mid-1970s. What’s more, over this period, British companies created 208,000 new positions, well above forecasts for 111,000 roles.
Australian unemployment data and UK PMIs due this week
Looking ahead, the pound to Australian dollar interbank exchange rate might be affected, both by the release of Australia’s unemployment statistics for December, as well as the UK’s PMIs (Purchasing Managers’ Indices) for January on Friday.
If you’re considering buying or selling Australian dollars and would like to compare rates or know more about the factors that could impact your exchange rate, feel free to contact me directly, I look forward to hearing from you.