The AUDGBP exchange rate is trading at 0.5556 after a quiet start to Monday trading. The pair could see volatility this week with the release of February GDP updates for the UK and the latest Australian employment update will also come later in the week. Any improvements to growth ahead of reopening have boosted sterling, while the employment rate is a key indicator used by the RBA.
AUD to GBP has been trading in a range since the end of January but Aussie dollar bulls saved the currency from its recent downtrend last week.
Traders Could Wait for UK GDP Tomorrow
The day ahead could be quiet for the British Pound versus Australian dollar as traders await Tuesday’s GDP update.
Analysts have predicted a 3-month average figure of -1.9% for the UK in February with a year-on-year improvement to -8.3% after recent upgrades. The UK has seen some economic boosts in the last week with construction at its fastest pace since 2014. The sector makes up around 8% of the UK economy, while the latest services PMI was also strong and that makes up the biggest proportion of UK growth.
Sterling’s tumble last week would suggest that the pound has seen its highest level for the near-term but the GDP could still spur gains.
Australian employment will be released on Thursday and last month’s release saw more employed in the country than before the virus. This month’s release is expected to show a 35k increase in jobs, with another 0.1% dip in the unemployment rate to 5.7%. The Reserve Bank stated in their most recent comments that further employment was needed, however, this was likely an attempt to avoid talking about interest rate increases. The end of the JobKeeper system could weigh on Aussie employment.
Australia Abandons Vaccine Targets
Australia has cancelled their vaccination targets for vaccinating almost all of its population by the end of 2021. The move comes after the recent issues surrounding the AstraZeneca vaccine, with the advice that under-50s should take the Pfizer version. Prime Minister Scott Morrison took to Facebook to update on the goals, saying:
“While we would like to see these doses completed before the end of the year, it is not possible to set such targets given the many uncertainties involved”.
Australia’s politicians and health ministers will breathe a sigh of relief after facing criticism for missing the latest targets. Authorities in Canberra changed their recommendations after the recent blood clot concerns.
World data updates over the last week were also embarrassing for Australia with the country ranked second-last out of all countries analysed for vaccine rollout pace, with the country sandwiched between Ecuador and Botswana.
The AUDGBP rate should see a quieter Monday but UK GDP will lead the pair into Wednesday’s Westpac consumer confidence and Thursday’s employment update for the Australian economy.
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