It’s rare to see a global currency losing against the British Pound this week as Brexit hostilities return but the Aussie Dollar has claimed that title. The GBPAUD has bounced strongly as investors fear further political tension with Victoria’s Premier Daniel Andrews facing a vote of no confidence. Opposition leader Michael O’ Brien led the motion saying, “I will be moving a motion of no confidence in this premier. Victorians have had enough”.
Andrews is facing criticism over his aggressive lockdown policies and claims that he has been “caught in a lie”, with Liberal MP James Newbury referring to Andrews as “Premier Pinocchio”. Victoria recorded a further 8 virus deaths on Thursday, taking the state’s toll to 745, out of 832 in the whole nation. Victoria’s numbers are being blamed on a bungled hotel quarantine system, which is under investigation, with Andrews claiming that the defense forces were never offered to assist when it now appears they were.
There is also growing public anger at Andrews and state’s police. The state of Victoria has issued 20,000 fines for breaching virus regulations, compared to only 1,400 in the state of New South Wales.
The events in Melbourne are casting a dark cloud over a normally stable political system and this is lending support to the pound despite the ongoing Brexit troubles this week, where U.S. Democrats have put pressure on the U.K.’s attempts to alter the EU withdrawal agreement with its Internal Market Bill, which politicians passed this week.
The GBPAUD could be a volatile pair to trade in the weeks ahead as both currencies face headline risk from political events.
GBPAUD Technical Outlook
The GBPAUD bounced from strong horizontal support at 1.17550 and the pair then cleared previous support at 1.7700. The double level move should see the pair move higher once more and the 50-day moving average suddenly comes into view but the 1.8000 figure would be an obstacle first. The Investing Cube team is available to assist all levels of traders with a Forex Trading Course or one-to-one coaching.
GBPAUD Daily Chart