The Pound Australian Dollar (GBP/AUD) exchange rate is gaining this morning as the UK enters its second stage of lockdown easing.
At the time of writing, the GBP/AUD pairing is currently trading at around AU$1.8049.
Pound (GBP) Bolstered by UK Lockdown Easing
The Pound is gaining against the Australian Dollar this morning as the UK’s second stage of lockdown easing comes into force.
The new rule changes mean that retail, hairdressers and beauty treatments and outdoor hospitality can reopen under social distancing guidelines.
Supporting the reopening of retail is the Federation of Small Businesses’ (FSB) most recent small business confidence gauge which has hit its highest level since late 2014.
Mike Cherry, FSB chairman commented on the easing of restrictions saying:
‘It’s fantastic that our shops, hairdressers and gyms can get back to doing what they do best all over England from today, with some restrictions easing in other parts of the UK as well. The certainty provided by the Government’s road map is filling many small business owners with renewed confidence.’
‘We live in hope that the virus stays in retreat so the remaining indicative dates for unlocking can be met, enabling our vital night-time economies, offices and travel and tourism businesses to get back to it as well.’
Any concerns over the UK’s coronavirus vaccine rollout appear to have disappeared as investors relish in the slow but significant reopening of the UK’s economy.
Australian Dollar (AUD) Reports Losses as RBA Stability Review Weighs on the ‘Aussie’
The Australian Dollar is reporting significant losses this morning against the Pound, broadly due to the latter’s strength.
However, the RBA’s most recent stability review continues to weigh on the Australian Dollar’s appeal heading into this week.
The comments from the RBA last week all but confirmed that the central bank will retain its dovish monetary policy for the foreseeable future.
Vaccine concerns continue to weigh on the Australian Dollar following a statement from Australian Prime Minister Scott Morrison that the AstraZeneca vaccine will no longer be offered to those under 50 due to blood clot links.
Investors are becomingly increasingly concerned that the country’s proposed vaccine deadline in October will be missed.
Pound Australian Dollar Exchange Rate Outlook: UK GDP Data in Focus
For Pound investors, UK GDP figures for February are expected to show a 0.6% growth, up from January’s -2.9% drop which would further support the Pound.
Tomorrow will also see the release of industrial production data from the UK for February, the figures are expected to remain in contraction due to the strict UK lockdown.
For Australian Dollar traders, the release of Australia’s most recent business confidence is expected to have risen 2 points during March.
It would be the sixth month in row that the index would be in growth territory, which could push AUD higher.
The GBP/AUD will continue to be driven by any further coronavirus developments in the coming days as England adjusts to its new found freedom.