The Pound Australian Dollar (GBP/AUD) exchange rate is edging higher through today’s session.
The Pound has been supported by the UK’s next step in lockdown easing came into force this morning.
At the time of writing, the GBP/AUD exchange rate is currently trading at around AU$1.8093.
Pound (GBP) Edges Higher on back of UK Lockdown Easing
The Pound has been supported through much of today’s session following the easing of some lockdown restrictions in England.
The easing of restrictions now means that the public can enjoy outdoor sports and meet up to six people from two households outdoors (and in private gardens) as of today.
A Downing Street spokesperson this afternoon commented on the easing of restrictions saying:
‘We remain on track to deliver the road map. We will continue to keep the relevant data and scientific evidence under review as we now move towards 12 April, which as you know is step two.’
It comes as Prime Minister Boris Johnson warned the public to remain cautious surrounding the virus:
‘Despite today’s easements, everyone must continue to stick to the rules, remember hands, face, space, and come forward for a vaccine when called.’
Investors are become increasingly optimistic surrounding the UK’s economic recovery from coronavirus in the coming months.
Australian Dollar (AUD) Limited by Global Risk Aversion
AUD has been limited today as a global risk-averse mood has pushed investors to head towards safe-haven currencies.
After the liquidation of Archegos Capital, a leveraged hedge fund in the US, many investors flocked to the US Dollar to limit losses after the fallout.
It comes as Brisbane has been imposes a new three-day lockdown after an outbreak of the UK coronavirus strain in the city.
Australia’s vaccination rollout has been slower than expected with around 500,000 people receiving doses of a vaccine as of last week. The government had promised 4 million doses by this stage.
The Australian Minister for trade commented on the new lockdown saying:
‘This is going to be part of the Australian way of life until everyone is vaccinated.’
GBP/AUD Exchange Rate Forecast: UK Growth Report in Focus
For Pound traders, Wednesday will see the release of the UK’s final Q4 GDP reading which is expected to show a modest growth of 1%.
The reading will help the UK avoid a double-dip recession and support the Pound.
For Australian Dollar investors, Wednesday will see the release of the most recent Markit Manufacturing PMI from Australia.
The PMI is forecast to have risen 0.3 to 57 points, which keeps the sector in growth territory.
The GBP/AUD exchange rate will continue to be driven by any further global coronavirus developments in the coming days.