The AUD to GBP exchange rate has paused with buying of the Aussie dollar below the 0.5600 level. The pound has been on a rally against its rival for most of 2021 and a breakout this week has seen it sterling threaten a recovery of last year’s losses.
The economic done is done for the pair this week and trading will likely be slow into the weekend. AUDGBP is trading at 0.5588 and the Aussie will need a bou nce back through 0.5600 to see a recovery develop.
Airlines Warn of Further Job Losses Down Under
Australian carriers are warning of further jobs being cut if the government support for airlines ends in March. Virgin Airlines is one of the companies seeking an extension of bailout monies. The airline went into voluntary administration in April and was acquired by US venture firm Bain Capital. The company has warned that 350 corporate and head office staff would be laid off in the months ahead.
But Virgin’s CEO said there was the potential for more job losses if the current support for the airline industry was not extended. Jayne Hrdlicka said the result would be “devastating” and also said the cost of airfares would soar, while regional routes would suffer due to low staffing numbers.
Australia’s unemployment rate has fallen from 7.5% in July to 6.6% due to the support from the Reserve Bank, with interest rates slashed to a record low of 0.1% but central banks are running out of room in 2021.
Aussie Dollar Supported by Virus All-Clear
The Australian dollar is being supported against the pound due to the country seeing no virus cases once more. This is in contrast to the UK which was battling against a high rise in cases and fatalities.
Former Australian prime minister Tony Abbott has hit out at the government over coronavirus “hysteria” in the country. He also said that the current domestic travel restrictions amount to “health despotism”.
Mr Abbott said: “Now sure, for the past year we’ve been coping with a potentially deadly disease. But it takes a fair dose of virus hysteria and health despotism for Australians to be barred from Victoria without first getting a visa.
“And then to be barred altogether from western Australia due to just a few cases of the disease, with an infection fatality rate for people under 50 of less than 1 in 5,000.”
The country has reported 28,000 virus cases since the pandemic began and this has resulted in 909 deaths, while the likes of the UK has reported much larger instances. This has weighed on the pound throughout the last year with the ongoing lockdowns and the country has seen its economy battered, particularly the services sector. The government furlough system is currently masking the employment crisis but the country is pushing ahead with vaccines to get the economy reopened.
If the UK can reopen sooner than expected then the pound can see further gains against the Australian dollar. Use the form below to get in touch if you have an upcoming currency exchange involving AUD and GBP, I’ll be happy to respond personally.