The AUDGBP exchange rate was higher by 0.10% on Monday as the Australian and UK economy get ready for jobs data and inflation figures. The British Pound is under pressure after Boris Johnson pulled back on the 21st of June reopening.
The AUD to GBP rate is trading at 0.5462 after a weak bounce from the 2021 lows.
Australia wants WTO to intervene with China
The World Trade Organization should penalize China’s “bad behavior when it occurs,” Australia’s prime minister said last week before the latest G7 summit.
The move is another blow in the ongoing spat between Australia and its largest export customer. Prime Minister Scott Morrison said that Australia would be “working with others to buttress the role of the World Trade Organization and to modernize its rulebook where necessary.”
“In my discussions with many leaders, I’ve taken great encouragement from the support shown for Australia’s preparedness to withstand economic coercion in recent times,” Morrison said in a speech in Perth. The comments are sure to infuriate China after the country applied trade tariffs to Aussie goods over an argument about the origin of the coronavirus.
The Australian government said in December that it wanted the WTO to intervene in its dispute with China over tariffs applied to barley and other goods. China effectively halted imports of Australian barley in May 2020 by applying harsh tariffs of more than 80% on the grain, accusing Australia of breaching WTO rules by subsidizing production and selling it below production cost.
Trade in Australian seafood, wood, beef, wine and coal has also been disrupted since the trade spat began and the AUD to GBP exchange rate could see volatility on further hostilities between the two.
Jobs figures ahead for Aussie and UK economy
The UK and Australian economy will both see the release of jobs numbers this week with the UK going first on Tuesday. Employment is said to grow by 150k jobs in the month, compared to 84k in the previous month.
The figures last month were still hurt by the realisation that millions are still tapping the furlough program and that could weigh on the pound reaction, while the UK and Australia both saw part-time jobs as a big weighting of their latest jobs figures.
he latest tensions are casting a cloud over the pound sterling recovery and the Aussie dollar is taking advantage to clear the support levels of recent weeks.
Australia’s jobs numbers are widely followed by the Reserve Bank of Australia and the month is set to show a gain of 30k jobs, with the unemployment rate set to stay stuck at 5.5%. That would give the RBA ammunition to stay stuck to its plans for a later rate rise.
The AUDGBP trades at 0.5462 after seeing a new low for the year at 0.5422 recently.