With the pound strengthening against many major currencies such as the euro and the US dollar, the same cannot be said for the Australian dollar as the rates have been falling sharply since the 3rd April where mid-market stood at a 2.045 and is now at 1.96 having fallen comfortably away from the key 2.00 levels.
The UK has very little economic data out this week to prevent further Sterling downturns, yet Australia has Westpac Consumer Confidence tomorrow with Consumer Inflation
Expectations and the more volatile Unemployment Change (currently at 5.1%) on Thursday. As with many major currency pairings at the moment, most market movements are driven by any Coronavirus developments, so any worsening in these countries’ COVID-19 statistics may pull the rates away from current levels.
In the most recent reports, UK virus cases stand at nearing 90,000 with over 10,000 deaths which far outweighs the 6400 cases and 62 deaths that the Antipodean nation has experienced. However, there is a delay between new cases and deaths, and their subsequent publishing so Australia’s figures do not include the 5000 hospital workers and family members forced into quarantine for 2 weeks after an “illegal dinner party” took place which caused a cluster of cases in Tasmania according to Brendan Murphy, Australia’s Chief Medical Officer. With the social distancing measures apparently not being heeded by everyone and with global virus cases having almost surpassed the two-million mark, it may be expected that further rate changes backed by the virus can be expected further into 2020.
In other reports by the BBC this morning, it has come to light that the UK death toll has only counted people who died in hospital and “airbrushing” out people who passed away in houses and care homes which could suggest that further Sterling weakness could occur should these figures skyrocket if the method of recording deaths is changed.
Having discussed the gains the Australian dollar has made over the pound, the present figure of 1.963 is up one cent from 10 hours prior at 1.953.
Clients looking to take advantage of the fluctuations the markets are witnessing in these unprecedented times may be able to on these improved rates as the currency pairing moves through another micro-scale peak in the rates. Get in touch using the form below for more information on how these changing statistics could have a knock-on impact on AUDGBP exchange rates.