AUD GBP Consolidates After a Positive Week for Aussie

AUDGBP Flat as Pound Sees BoE Support

The AUD GBP exchange rate was consolidating the week’s gains after a rare positive week for the Aussie dollar in recent times. The Aussie has suffered from the latest lockdowns, which came as the UK saw its economy reopen fully. Pound sterling traders are pulling back expectations and the Australian PM has hinted at lockdowns being unsustainable.

The AUD to GBP trades at 0.5280 after finding a bottom at 0.5240 recently.

Sydney shows record amount of virus cases

New South Wales has seen a record of new infections with 1,029 on Wednesday. Foe NSW it is the most daily cases in any state or territory in Australia since the start of the pandemic.

State health officials said on Thursday that the strict lockdown would be extended until at least September 10th. New South Wales’ deputy premier, John Barilaro, said: “We’re sitting on a knife-edge. It’s a tinderbox ready to explode.”

The country’s aim is to get 70% to 80% of people fully vaccinated before opening up and living with the virus, officials said. About 94% of the over 14,000 Australians said to be infected with the coronavirus are in New South Wales, according to federal data.

Tomorrow will see economic data for Australia with preliminary retail sales figures for July. The reading was -1.8% but is expected to be -2.3% this month. The havoc caused by the latest lockdowns could see that number come in weaker.

UK sees rising virus cases in the vaccinated

The Australian government wants to reach 70-80% vaccinations to reopen the economy but should keep an eye on the guinea pig that is the UK.

The country saw a full reopening due to the fast rollout of vaccines, but the country is still seeing a rise in case numbers with many among the vaccinated and news that they are 50% less effective after 6 months.

The latest data has shown another 140 people died within 28 days of a positive test in the UK, while another 38,000 cases were recorded in Thursday’s figures. The vaccination is not a quick fix as the UK is showing but Australia’s government want to copy that strategy which is unlikely to see the positive happy recovery that they expect.

The UK economy is also seeing problems from an HGV driver shortage, which is creating a food shortage at some supermarkets. The key reason for the HGV driver shortage is said to be pay, which is nearly on par with retail workers. Drivers several years ago would be earning nearly 50% more than retail staff but that gap has closed to just 12% as many drivers are driven out of the industry by Brexit and red tape.

The AUD to GBP will move on the Australian retail numbers tomorrow and next week is another quiet week for the pair on the high-level data front.