The GBPAUD interbank exchange rate has remained fairly range bound after the past 24 hours, following some aggressive swings in the market in the days prior to this.
With the GBPAUD pair now trading around 1.97, it would seem that the markets have started to digest the recent developments, amid the on-going COVID-19 crisis.
The pound had made significant gains against AUD last week, despite struggling against many of the other major currencies, in particular EUR and USD. For those client looking to buy AUD with GBP, this would have perhaps offered an unexpected opportunity, especially when we consider the downturn the pound was facing almost across the board.
One of the main factors driving that particular market trend was the AUD’s inability it would seem, to gain any type of significant traction in times of a global economic downturn. Historically AUD has often seen its value decrease sharply during a global crisis, such as we are experiencing at present due to the unprecedented spread of Coronavirus and the relative global government response to this.
Whilst AUD is struggling to curb its losses against many of the major currencies, this can also be said for some of the other commodity-based currencies such as CAD, NZD and ZAR.
During times of global market uncertainty these “riskier” assets are often sold off in haste, as investors turn to the “safer haven” currencies such as the USD and CHF.
The pound is not without its set of unique problems. The UK Prime Minister Boris Johnson has now announced a UK lockdown, with people only now able to leave their houses under strict guidelines, the UK economy is predicted to be forced into recession during the next two quarters.
With UK Parliament set to shut on Wednesday for its Easter break and a review of the current lock down another two and a half weeks away, it maybe some time before have a clearer indication as to whether the current measures imposed by the government are having any type of positive impact on the spread of the COVID-19 virus.
If you’d like to discuss these factors and there impact on your AUD currency exchange, you can get in touch using the form below.