The AUDGBP exchange rate was -0.10% lower on Thursday with no fresh data for the Australian dollar. Traders are still clinging to the negative stories surrounding the Aussie dollar with the Sydney lockdowns and growing unrest amongst citizens in the country. The UK saw lower mortgage approvals yesterday but that was in line with the drop in house prices a day earlier.
The AUD to GBP pair trades at 0.5295 and is still plumbing the depths of 2021 prices.
Australian police requests support from army
The Australian dollar is not being helped by reports that the Australian police have requested support from the army to enforce covid restrictions.
The country’s police commissioner, Mick Fuller, has confirmed the request in a statement issued today.
“The NSW police force is significantly expanding its enforcement activities in Sydney over the coming days and has requested 300 ADF personnel to boost its operational footprint,” the statement said.
“With an increase in enforcement activity over the coming week, I have now made a formal request to the prime minister for ADF personnel to assist with that operation.”
The NSW minister for police, David Elliott, welcomed the request for assistance.
He said the combination of police and army personnel would be “a functional, effective and dynamic team to fight this pandemic”.
The Australian government has been criticised for its botched vaccine rollout and for its heavy-handed “zero covid” approach. This has led to rising unrest and protests and the latest decision to have the army on the streets is a shocking escalation for the country’s approach to beating the virus.
The UK delivered a fast vaccination program and has now fully opened its economy with infection rates falling.
UK mortgage approvals lower than expectations
Data on Wednesday saw mortgage approvals in the UK coming in lower than expected but this was predictable after the drop in housing prices a day earlier. British house prices were lower in July after the coronavirus tax break was scaled back at the end of June. House prices dropped by 0.5%, which marked the first fall since March.
The drop was not enough to move the dial on the Aussie dollar and pound exchange rate.
Traders remain focused on the UK’s smoother handling of the coronavirus situation and the escalation of force by Aussie police in recent weeks is a worry for the recovery and foreign investment into the country.
A worry for the UK is a second day of rising virus cases in the country after seven-straight days of decline. Britain saw over 31,000 infections on Thursday after a jump to over 27,000 a day earlier.
The AUDGBP exchange rate has no further data for Friday after the key release being the Australian inflation number this week. The pound will continue to see support and the pair will likely consolidate at these levels into the weekend.