AUD to GBP Moves Lower from Highs on Virus

AUD GBP Nears Recent Highs Ahead of Inflation Data

The AUD to GBP exchange rate was still showing trader indecision at the 2020 highs around 0.5730. The pound was showing gains of 0.20% in early trading on Monday and as the two countries struggle with coronavirus lockdowns.

In the UK, the country is in a full lockdown as fatalities registered as COVID saw a fourth day above 1,000. In Australia, the country is also seeing tough restrictions but with little cases. Three million people in the country’s most populous state of New South Wales were locked down last week because of one case.

AUDGBP was trading around the 0.5700 on Monday and there is no big economic data until an update on UK GDP on Friday.

UK Opens Vaccination Centres to Get the Economy Grooving

The UK continues to struggle with the coronavirus as a further 1,035 deaths in the UK were reported on Saturday, taking the total to 80k. The statistics marked a fourth-straight day above the 1,000 figure.

The British government is ramping up its vaccination effort this week with seven mass vaccination centres in England with reports that ministers are considering tougher lockdown rules to reduce the spread. The new centres will offer vaccines to patients aged 80 and above.

The Government is targeting a total of 14 million vaccines delivered by mid-February and this will maybe stretch into March, so its possible that a recovery in the British pound could get underway nearer the second quarter and the currency could see a real rally if post-Brexit figures for growth and trade look good. There is also the likelihood that the country’s negotiating teams will get onto the task of striking deals with other nations are being blinded for four years by European talks.

Figures from Public Health England have shown London’s regional case rate to be the worst in the UK and this is leading to an increasing number of commuters working from home. The number of public transport users in London has fallen since the beginning of the latest lockdown, with tube travel lower by 18% and bus journeys 30% lower, according to data from Transport for London.

Strict Measures Loom Down Under

More restrictive lockdowns could be looming for Australia, with enhanced contact tracing and other measures if the UK strain of the virus were to spread, an epidemiologist has warned.

University of Melbourne’s Tony Blakely supported the national cabinet’s decision on Friday to mandate pre-flight tests, masks, and testing of staff. Expanding on the mutations of the virus he added, “Once we’ve got 30 or 40 per cent of the population immunised, we can probably start to relax again.”

Australia has been more successful than most developed nations with total at 28,000, with 900 deaths. This is lower than a UK flu season and the effects are seeing advantages in the economy as the country has seen strength in its jobs market towards the end of 2020. The latest appearance of cases is a threat to the AUDGBP strength seen late in the year as the Aussie currency moved back to the September highs.

Get in touch using the form below to discuss these factors in further detail, and the tools available to help you plan your currency exchange ahead.