The AUDGBP exchange rate was a little higher on Tuesday as the UK gets set to release the latest employment figures. The country has seen a reopening of its crucial services sector and that is expected to boost hiring in the economy. The reopening hopes for the 21st of June were dashed with the Prime Minister confirming a delay for four weeks last night.
The AUD to GBP rate is trading at 0.5462 after a weak bounce from the 2021 lows and the UK economic data could see further pound gains.
Employment data and inflation will drive the AUD to GBP
The UK economy will see the release of employment figures for the UK with markets looking for a boost in new jobs to 150k for the month after 84k last month.
The UK economy’s reopening thus far has helped to see the crucial services sector boosted and that will show up in hiring as businesses have more confidence to plan ahead, while they will also have much needed profits from the recent surge in holiday bookings and hospitality with locked-down Brits scheduling getaways and a return to small weddings.
The Australian economy will also see employment numbers released this week in a data source that is closely watched by the Reserve Bank of Australia. The recent Melbourne and Perth lockdowns may have hurt the economy down under and halted hiring, but both countries saw a rise in jobs offering only short hours or temporary contracts. The UK also has a lot of workers still on the furlough program.
Between the two data sets will be the latest inflation data for the UK and that will see the Bank of England under pressure if prices rise. Last week saw US inflation at the highest level since 2008 so there is potential for economic fallout if the other developed nations see similar price rises.
Boris delays the UK roadmap again
Boris Johnson confirmed the fears of pound bulls by delaying the UK reopening for four weeks because rising coronavirus cases.
The roadmap had planned to see a full reopening on the 21st of June, but the PM’s so-called ‘Freedom Day’ didn’t transpire. Johnson also set a new target on virus jabs to help Britain return get to the full reopening stage amid evidence that the vaccines work on the Indian strain.
The PM has now set a new ‘freedom day’ for July 19, and the Prime Minister vowed that two-thirds of all adults would be fully vaccinated for that date. Officials are hoping that the four-week delay to the lockdown easing will see millions more Britons fully vaccinated before the latest reopening date.
“I think it is sensible to wait just a little longer,” the Prime Minister said at last night’s news conference. “As things stand, and on the evidence that I can see right now. I’m confident that we will not need more than four weeks.”
The AUDGBP trades at 0.5462 and will look to the today and tomorrow for the next path ahead.