The AUDGBP exchange rate is flat after giving up recent gains above the 0.5600 figure. It looked like the Aussie would capitalise on the consumer and jobs reports in Australia, but it has drifted back. The week ahead will be driven by UK data as tomorrow brings the latest employment status for the UK economy, while Wednesday will see inflation updates.
AUD to GBP trades at 0.5590 after seeing highs at 0.5635 on Friday.
Joy as Australia and New Zealand Travel Finally Opens
Australia and New Zealand have finally opened their long-awaited travel bubble after two failed attempts over the last year.
The reopening brought joy for separated families and relief for tourism companies as the two countries make the first steps towards what is hoped will be a global loosening in travel restrictions.
Air New Zealand had been running two or three flights per day to Australia but that jumped to thirty and global carriers are hoping for a similar bounce across the board following the vaccine rollout.
The start of the bubble also coincides with the New Zealand ski season in another boost for the country’s tourism sector. Australian Prime Minister Scott Morrison said the bubble was a “win-win” for both Aussies and Kiwis as the two countries see a further move towards normal business operations. The UK saw its own travel boost with the German and Portuguese governments loosening flight restrictions from the country due to the large vaccine rollout. Britain is likely to see more countries doing the same as it moves closer to the Mid-May travel return.
British Jobs to See Another Drop
Tuesday will see the release of the latest jobs figures for the British economy with analysts forecasting a loss of -147k jobs. The Chancellor’s furlough scheme is still in place until the end of September, but the country is still seeing a large amount of job losses due to the uncertainty for businesses. This is in contrast to the Australian economy which is seeing a strong addition of jobs and a drop in unemployment. The end of the country’s own furlough program at the end of March should factor into the next release in a few weeks’ time but the underlying position is strong as the mining industry props the country up.
Wednesday will then see inflation released for the UK with a rise from 0.4% to 0.7% expected and this could move the currency pair if the UK is seen to have prices heating up ahead of the full reopening. That would add pressure to the Bank of England as the risk of prices running ahead of growth would be an issue.
The AUDGBP will look to hold the 0.5600 level in the next couple of days and the British data will determine whether the breakout holds, or we see a return to the previous price range from the 0.5500 level.
Get in touch ahead of your currency exchange to discuss these factors in further detail.