The AUDGBP exchange rate recovered from yesterdays’ selling with a 0.17% jump higher on Wednesday. New South Wales has been dealing with another problem as flooding has seen more than 40,000 people having to flee their residences after torrential rain brought floods.
AUDGBP was also higher after UK inflation came in much less than expected as retailers slashed prices.
NSW Starts Clean-up After Flood Damage
Sydney’s western regions have seen more than 40,000 people evacuated from their homes after flash floods were sparked by torrential rain. The Insurance Council of Australia said that 17,000 damages claims with a value of A$250 million had already been submitted on Wednesday.
Homes were flooded in the region, livestock was swept away and crops were also affected in the latest natural event to rock Australia.
The country’s important mining operations were also hampered but the ARTC partially reopened THE Hunter Valley rail lines to Newcastle, which is the world`s largest coal export lane. The line serves mines run by BHP, Glencore Plc, and others. Newcastle shipped 158 million tonnes of coal last year and is an important part of the country’s growth picture.
UK Inflation Sees a Large Miss on Forecasts
The UK consumer price index saw a gain of 0.4% in February, according to the Office for National Statistics, but this was a large miss on expectations of an 0.8% jump.
The dip was blamed on retailers slashing prices of their clothing lines in an effort to shift stock. Inflation has been a closely-watched indicator in the world economy recently and the number from the UK will bring a sigh of relief from the Bank of England as market attention would’ve turned to them if the numbers were high.
This morning will also see the UK release its latest Purchasing Manager’s Index (PMIs) readings this morning as the country remains locked down.
Britain is grinding towards a further reopening of its economy in April and May after a successful rollout of the vaccine, where half the country is said to have gotten the first dose.
Sterling could depend on domestic spending in the next months and this could be why governments are trying to warn the public against taking foreign holidays. The embattled services sector could do with a bout of spending in its retail and hospitality divisions after a year of reduced trading. Yesterday saw a slightly better jobs reading from the UK yesterday with the unemployment rate dipping to 5%, but the extended furlough scheme is keeping over 4 million on temporary incomes and it’s not known how it will affect the employment situation when the economy reopens. The data also showed that the hardest hit age group was the under 25s.
AUDGBP is stuck in a range between 0.55 – 0.5600 and is looking for a catalyst to start a new trend. If you have a currency exchange involving Australian dollars to make in the coming months, get in touch with us to be kept up to date on the latest market movements.