AUD to GBP Rallies After Unemployment Drops

AUD GBP Higher but UK Employment Ahead

The pair closed higher on Wednesday and may be finding a near-term bottom as vaccinations start and Melbourne escapes a snap lockdown.

AUDGBP is trading at 0.5596 as the pair seeks to get above the 0.5600 level for further gains.

Economy sees 30k new jobs as unemployment hits 6.4%

Australia saw jobs in the country increase by 29,000, which was lower than expected, but the unemployment rate fell to 6.4%

The latest report from the Australian Bureau of Statistics saw full-time employment higher by 59k to 8.8 million jobs, while part-time roles were lower by 29.8k to 4.1 million jobs.

Australia’s Treasurer Josh Frydenberg Welcomed the Figures, Saying:

“It has been a remarkable recovery in the Australian labour market. To see the unemployment rate fall to 6.4 per cent today and to beat market expectations, and to see a net increase of more than 29,000 jobs, all of which are full-time, is something to celebrate”.

For the AUD to GBP rate, the treasurer has previously said that an unemployment rate “comfortably below 6 per cent” would see a strategy shift to bringing down debts and deficits, while ceasing spending on job stimulus.

This still seems a lot further out and Frydenberg added:

“We continue to watch the labour market very closely but our thinking still remains comfortably below 6 per cent and is around 5.25 per cent, or around 5.5 per cent.”

Australian Politicians Round on Facebook

Aussie PM Scott Morrison has said Facebook’s decision to ban news in in the country were “actions to unfriend Australia” that “were as arrogant as they were disappointing”.

Western Australia’s premier, Mark McGowan, has also compared the social media giant to North Korea after the company blocked the page of the WA opposition leader, Zak Kirkup.

It’s another combative stance for the Australian politicians after a recent trade spat with China. Facebook’s moves come after proposed legislation in Australia that would see technology platforms having to pay news publishers for sharing their content. Rupert Murdoch’s NewsCorp has been a critic of the social media platforms for these activities.

The pound sterling has lost ground despite yesterday’s inflation figures being slightly higher than expected. Boris Johnson will now discuss the country’s plans for reopening on Monday, while Melbourne is set to be released from its own five-day lockdown today.

The AUD to GBP exchange rate could try to move back towards the 2020 highs at 0.5730 but this could depend on the pace of the UK’s exit from lockdown, which will be clarified on Monday.

Speak to us ahead of Monday if you have an upcoming currency exchange to find out more AUD exchange rates in the coming weeks.