AUD GBP Rallies as Pound Sterling Faces Energy Pressures

AUD GBP Rallies as Pound Sterling Faces Energy Pressures

The AUDGBP exchange rate was higher by 0.62% on Tuesday as the UK grapples with an energy price crisis. There has also been talk of Australia’s borders opening in December and a reopening for the likes of New South Wales. Victoria state has now overtaken NSW on covid cases.

The AUD to GBP exchange rate is trading at the 0.5340 level with resistance ahead at 0.5380.

Pound thumped by gas price and fuel shortage pressures

The pound sterling was thumped in Tuesday’s session as fears over a winter energy crisis rocked the UK.

The move higher in gas prices to record levels has coincided with a run on petrol stations by panic buyers and this is leading to fears over winter energy supplies. Factories that have been struggling with production and supply chains will also be in the firing line.

For the pound sterling, the threat of stagflation looms as the UK growth picture slows, while the BoE governor said that recent inflation could force an interest rate rise. The UK forecourts have bene hit by panic buying due to media reports of BP retail outlets being shut down over a shortage of HGV drivers.

Boris Johnson suggested that the crisis at petrol pumps was now getting under control and said:

“… what we’re seeing now, what we’re hearing now from industry, is that the situation on the forecourts in our petrol stations is stabilising.”

Victoria overtakes New South Wales, Rinehart warns of politicians’ spending

Victoria has officially overtaken New South Wales in daily Covid case numbers, recording its highest numbers since the beginning of the Delta outbreak.

The state’s health department said that an error meant almost 150 cases had not been tallied over the weekend. On Tuesday, Victoria recorded 867 new cases.

“A number of these cases were unfortunately infectious in the community for a number of days. And we are aware of a household gathering that occurred over the weekend, so we have concerns these case numbers will grow,” the deputy health secretary said.

It was also confirmed that the areas of Muswellbrook and Port Macquarie would go into a week lockdown.

Gina Rinehart has warned that Australia is on the same track as Sri Lanka and Argentina in falling from prosperity to poverty because of political big-spending and regulation.

The mining magnate, who is the country’s richest person with a net worth of $31billion, urged Australians to be ‘on guard’ against the ‘ruining effects of socialism’.

She sounded the warning in an upcoming book titled Australia Tomorrow and said:

“For generation after generation, we have wanted to hand down a better country for our children,” she wrote in her essay obtained in advance by Daily Mail Australia.

“Sadly for this generation I believe this is now at risk, which the younger ones amongst us, in particular, should not want.”

The Aussie dollar will look to capitalize on this bout of sterling weakness and probe higher levels.