The British Pound's ongoing sell-off against the Australian Dollar means the GBP/AUD pair is now recording a loss for 2020, marking a significant shift in fortunes for an exchange rate which had been riding at its strongest levels since 2016 just a month-and-a-half earlier.
Foreign exchange strategists at global investment bank TD Securities tell clients they are not buying into the strong rally in risk assets at the start of the new week, and look to sell the Australian Dollar as an expression of this view.
The Pound-Australian Dollar rate was in recovery mode Thursday and could be lifted back to 1.94 by weakness in the antipodean currency over the coming days, although the sell-off is not yet over and could easily resume if the AUD/USD rate is able to recover its footing.
The Australian Dollar was seen trading lower in the wake of data showing a surge in unemployment during April owing to the coronacrisis, and economists say the unemployment rate should continue to rise over coming weeks.
The Australian Dollar is trading lower against its G10 peers at the time of writing courtesy of a softer tone to global stock markets, but we are told by one analyst that markets are likely to remain resilient and this should in turn ultimately support the Aussie currency.