The Pound Australian Dollar (GBP/AUD) exchange rate has fallen today as a risk-on market mood is benefiting the risk-sensitive ‘Aussie.’
At the time of writing the GBP/AUD pairing are trading at around AU$1.7885.
Pound (GBP) Exchange Rate Lower Despite Upbeat UK Economic Market Mood
The Pound (GBP) has struggled against the ‘Aussie’ for much of today as the latter benefits from the global risk-on mood.
Sterling has however seen any losses limited following an upbeat UK market mood as coronavirus cases continue to fall and the UK reopens from lockdown measures.
The newly found Indian mutation of the coronavirus has caused some concern for investors as Prime Minister Boris Johnson cancels his trade trip to India due to a surge in cases in the country.
A lack of any notable UK economic data today has also caused the Pound Australian Dollar exchange rate to head lower.
Australian Dollar (AUD) Supported by Risk-on Mood
The Australia Dollar (AUD) is benefitting from a risk-on mood today as a pullback in US yields allows the currency to head higher.
Supporting AUD further was the news that China’s GDP had expanded over 18% in the first quarter of 2021, with China’s National Bureau of Statistics saying:
‘The national economy made a good start. We must be aware that the Covid-19 epidemic is still spreading globally and the international landscape is complicated with high uncertainties and instabilities.’
Even more so the reopening of the travel corridor between Australia and New Zealand, which means that passengers will no longer have to quarantine has bolstered the ‘Aussie’ higher.
New Zealand’s Prime Minister Jacinda Arden commented on the reopening of the corridor saying that ‘it is truly exciting to start quarantine-free travel with Australia’.
Pound Australian Dollar Exchange Outlook: UK Employment Data in Focus
For Pound investors, tomorrow will see the release of the most recent employment change data from the UK for March as a falling unemployment rate is hoped to bolster Sterling.
More so, the release of the UK’s inflation data on Wednesday is hoped to give an insight into how the UK’s economy is performing as the country reopens from lockdown restrictions, as inflation is forecast to have risen to 0.8% in March.
Australian Dollar (AUD) investors will be awaiting tomorrow’s release of the Reserve Bank of Australia (RBA) latest meeting minutes.
The minutes are hoped to give an indication on whether the RBA is going to remain dovish surround Australia’s economy in the coming months.
The global market mood will continue to drive the GBP/AUD exchange rate in the coming days, if global risk sentiment continues to improve then AUD would head higher against many of its rivals.