AUDGBP Higher as Victoria Looks to Ease Lockdown

AUD GBP Trades Above 0.5300 Ahead of Consumer Confidence

The AUDGBP exchange rate was 0.17% higher on Tuesday as the state of Victoria reported two virus cases and was on track to see an end to the most recent snap lockdown.  The economy awaits consumer confidence figures tomorrow, but the Aussie is still bouncing from the recent yearly lows below 0.5450.

The AUD to GBP rate is trading at 0.5475 and there is no major data for the pound until Friday.

Cases under control in Melbourne

The state of Victoria recorded just two local cases as authorities claimed that the state was “on track” for an easing of restrictions before the weekend. However, it was reported that the latest variant cases were tracked back to the Victoria hotel quarantine program, in another high-profile leak from the system.

Investors are also looking ahead to China’s consumer and producer price indices before the release of US inflation data this week. Markets will be eager to see the pace of US inflation for the month after the fastest move higher for prices since 2008 was registered last month.

Australian Treasurer Josh Frydenberg said in an interview to news outlets that the slow vaccine rollout in the country was moving forward, but failed to give a target date for when the Aussie population will see herd immunity.

“It’s definitely gaining pace,” he said.

The treasurer also confirmed that the budget contained an “assumption” that the vaccine would be available to anyone by the end of the year. The Aussie government was previously criticised for the slow rollout of the vaccine and abandoned its target dates after the pressure.

UK vaccinating 25-year-old age group

UK ministers and medical advisers are considering a two-week delay to the end of the lockdown over concerns that vaccines have not had enough time to take effect, alongside the spread of the Indian virus variant. The majority of British adults have now been vaccinated and the program is now being rolled out to younger age groups who are much less at risk from the virus.

Over 76% of UK adults have now received one dose of the vaccine, while over 53% have received both. The Government has expanded the rollout since meeting its target of offering all over 50s a first vaccine before April 15. The over 50 age groups account for 99% of coronavirus deaths.

Boris Johnson is expected to make an announcement on the June 21st lifting of restrictions next Monday, just a week before the date, to lay out the government’s plans. The country is still operating close to normal conditions and the UK GDP update on Friday could be an important indicator for the Aussie to pound exchange rate.

The AUDGBP has found a low at the 0.5460 level and will look to Westpac consumer confidence tomorrow to get another push higher. The UK will see the release of 3-month average GDP figures on Friday.