- GBP to AUD exchange rate drops 0.8% on Thursday
- Australian dollar continues 3-week uptrend over pound sterling
- Marks a 4.4% fall in the pound to Australian dollar rate since the start of the month.
Pound sterling to Australian dollar rate down 4.4% so far in April
The Australian dollar has been making consistent daily gains over the pound. Whilst the pound has staged a later recovery against some currencies, it was unable to against the Aussie dollar. According to data from IG, the GBP to AUD exchange rate opened April at 2.02736 and closed Thursday 24th April at 1.93807, after a 0.8% slump on Thursday.
Current GBP to AUD rate: 1.7667 AUD
Current AUD to USD rate: 0.6929 USD
Current GBP to EUR rate: 1.1765 EUR
Australia has not been immune to the effects of the coronavirus pandemic and has pledged some 10% of Australian GDP to its recovery efforts. However, so far the government response and the country’s relative isolation from the rest of the world have served it well.
AUD was buoyed earlier this week by domestic retail sales figures that were surprisingly upbeat – according to preliminary data published by the Australian Bureau of Statistics, sales growth rocketed up by 8.2% in March, the largest monthly rise on record. However the surge was driven by a huge 22.6% increase in supermarket turnover last month as fears over the coronavirus pandemic drove significant panic buying for food and essential goods.
Sarah Hunter, Chief Economist at BIS Oxford Economics, commented, “Looking ahead, the boost to supermarket spending is likely to subside, as households come to the end of stocking up spending”.
GBP to AUD Rate – Greater impact to GBP than AUD as a result of PMI release
AUD was also able to shrug off the latest flash PMI number from Australia which showed another big slump in April, from March’s 38.5, to a record low of 19.6. Providing an early indication that however bad March numbers were, April will be even worse, and that unless we see a relaxation of lockdown rules in May, these low activity readings could continue for some time to come.
Meanwhile the same couldn’t be said for GBP as UK services PMI collapsed deeper into contraction territory in April and left the GBP to AUD exchange rate in a sharp slump. While forecasts had pointed towards a major decline, markets were still caught off guard by the sheer extent of the drop, which took the PMI from 34.5 to just 12.3. This gigantic slowdown marks a fresh low point since the measure began, highlighting the severity of the pressure currently facing the UK economy.
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