The AUD to GBP exchange rate was lower on Monday as the pair still hovers around the 0.5600 level. Melbourne is now on the third day of a five-day lockdown, while the UK has vaccinated 25% of its adults. The week ahead will bring inflation numbers from the UK and employment from the Australian economy.
AUDGBP is trading 0.05% lower at 0.5597 in early trading at the start of the week.
UK Vaccinates 15 Million with First Shot
Australia is celebrating the arrival of 142,000 Pfizer vaccines on Monday while the UK has already administered shots to 25% of its adults. The UK announced over the weekend that they had reached their target of 15 million vaccinations a day early.
The Australian government is releasing 80,000 doses next week, with 50,000 going to states and territories to vaccinate frontline health workers, and 30,000 to care homes. The numbers highlight the UK’s pace on its own programme and the country be open ahead of its international peers. Last week also saw the Prime Minister Scott Morrison announcing the purchase of an extra 10 million doses of the vaccine, bringing their total to 20 million.
The UK is awaiting the lifting of its latest lockdown and the country could see a strong second quarter while Australia continues to initiate their five-day lockdown strategy when new cases arise.
Economic Data will Drive the Pair this Week
Data this week sees the release of UK Inflation figures with a cooling expected due to the latest lockdown. Analysts are expecting a 0.5% monthly reading for January, but the Bank of England will have to deal with inflation when the economy does reopen.
Recent stimulus measures and a new budget will coincide with the expected March reopening, but the BoE has also mentioned a big savings glut of £125 billion that savers have amassed in the lockdowns and this could also be unleashed into the economy.
Employment for the Australian economy is expected to a show that 40k jobs were added after 50k in the previous month. The unemployment rate is sticky at over 6% and a 0.1% drop is expected this time to 6.5%. The worry for Australia’s economy is that they haven’t seen the same level of restrictions and the economy has seen some strength from exports to China.
The Reserve Bank doubled their recent stimulus measures, but once the UK reopens, they could see a better relative performance that moves the AUD to GBP exchange rate in sterling’s favour.
The AUD to GBP rate has resistance above at last year’s high of 0.5730 and the pound is looking to push towards the 0.5500 support. If you have an upcoming currency exchange and would like to discuss the AUD to GBP rate further you can get in touch using the form below.