The AUD GBP exchange rate was -0.11% lower on Monday as the Australian economy continues to feel the pinch from the government-imposed lockdowns. Tomorrow will see the release of the latest RBA minutes alongside the UK employment figures. Sydney’s lockdown has been extended again
The AUD to GBP pair trades at 0.5308 and is at risk of another drop towards the yearly lows.
Aussie police hike Covid fines as Sydney lockdown widened
Australian police have hiked fines for defiance of government covid orders as Sydney’s lockdown was extended state-wide.
The fines will jump from A$1,000 to A$5,000 for anyone breaching orders to stay at home. State Premier Gladys Berejiklian said:
“We have to accept that this is the worst situation New South Wales has been in since day one. And it’s also regrettably, because of that, the worst situation Australia’s been in”.
Locally transmitted virus cases jumped to a record 466 over the last 24 hours but the country is very aggressive with their strategy as the UK is fully open while registering over 25,000 cases per day.
The latest developments make it unlikely that Sydney will escape the latest lockdown on August 28th as originally planned.
“We will get through this, but September and October are going to be very difficult,” Berejiklian said.
Hundreds more military personnel are being deployed next week in Sydney to enforce the latest lockdown. Aussies are also required to have a permit to enter rural areas. The dollar is struggling as analysts count the cost of the daily lockdowns.
RBA minutes and UK employment ahead tomorrow
The Australian dollar is likely to struggle on Monday with the backdrop of lockdowns, but Tuesday will bring economic data in the form of the Australian RBA meeting minutes, alongside the UK’s latest employment figures.
A survey by the CIPD said that British companies are expected to increase staff numbers by the most in eight years during the coming months with few planning redundancies. That will continue to support the market in the coming months, but there is also the issue of furlough, which is due to end in the UK at the end of September. The UK is expected to show that 25k jobs were added to the workforce.
The UK missed the BoE’s growth target by 0.2% last week but the 4.8% is still one of the fastest growth rates amongst the developed economies. The bank are still not expected to raise rates until sometime around 2023.
The Australian central bank will release minutes and that will show the bank’s recent decision to continue with the tapering of its stimulus, but the virus situation surely increases the chances of a U-turn as the economy is losing an estimated A$1 billion per week from the Australian lockdowns.
The AUD to GBP rate has yearly lows at 0.5272 and the data tomorrow could see another drop towards the lows if the UK can muster a better jobs number.