The pound to Australian dollar exchange rate still hovers around the 2 dollar level as the Australian dollar remains on the back foot as global economic growth is expected to fall dramatically. Those looking to buy Australian dollars may be wise to consider taking advantage of the current levels whilst they are still available. What is most interesting to see is that Chinese business activity is now starting to return to normality which is extremely encouraging for the rest of the world. The Australian dollar is likely to be impacted heavily by any changes in sentiment as to how the global economy will recover from this pandemic.
If the UK is able to maintain the spread of the virus then this could help lift the pound higher although it is more likely to be the Australian dollar that could see significant gains when the markets begin to see normality returning in the months ahead.
Important Data Releases to Look out for This Week
UK Purchasing Managers Index for the manufacturing sector is released on Wednesday and the all-important services sector is released on Friday. These will be useful to give some indication as to how the British economy has been hit since self-distancing measures were introduced in March.
Perhaps the biggest release for the week as far as the Australian dollar is concerned will be US non-farm payroll data released on Friday. These numbers will be for the month of March and will give the markets a good indication as to the Covid-19 situation in the US and how much damage has been done to the US economy since the onslaught of the coronavirus. This is relevant to the Australian dollar as the US dollar as well as some other currencies are used as safe haven currencies in times of global uncertainty.
COVID -19 Cases in Australia
In the US the number of confirmed Covid-19 cases is soaring and questions are being asked as to whether the government has done enough to stop the spreading of the virus. In Australia the death toll stands at 18 whilst 4163 people have tested positive for the virus and there are signs that in some states the number of new infections has stabilised. Meanwhile in Australia the government have agreed to spend $130 billion to help pay wages for those who are unable to work due to self-distancing measures introduced. Any new measures introduced could see volatility for GBP vs AUD.
If you’d like to discuss these factors and how they could impact an upcoming currency transfer, feel free to get in touch with me, James Lovick, using the form below.