The pound vs the Australian dollar is back trading above 2 on the interbank level after falling during yesterday’s trading session. AUD has been generally weakening against the pound since the Bank of England introduced new monetary policy measures back in March.
The Bank of England cut interest rates to just 0.1% and introduced Quantitative Easing measures of £200bn. This injection of stimulus helped to support the pound against a number of different currencies after a period of freefall particularly vs the US dollar. Indeed, the pound fell to its lowest level vs the US dollar since 1985 at just above 1.14 but it is now trading over 1.23 at the time of writing this report.
According to the latest statistics published in Australia, they currently have confirmed cases of 6,009 with 50 deaths. The figures are still relatively low compared to many other countries worldwide but the country brought in lockdown controls later than many other countries.
In the meantime, Wuhan province has relaxed some of its own lockdown controls. In what was the first area of the outbreak Chinese authorities are allowing residents to travel in and out of the city once again. This is good news for the residents of the province but also gives some positive news that things can improve in time.
Could Chinese economic data help to improve the Australian Dollar?
Turning the focus back towards the economy and China will release its latest set of inflation data for March on Friday morning. Clearly this is going to show a large fall as it measures the time when the pandemic really hit the country but if it comes out slightly better than expected could this be the catalyst to help the prospects of AUD. As China is Australia’s largest trading partner often when there is good news in the world’s second largest economy this can help to support AUD’s value. Therefore, if you’re in the process of buying or selling Australian dollars then make sure you pay close attention to the release on early Friday morning.
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