The AUD GBP exchange rate was flat on Wednesday after it gave up some gains earlier in the day. The fuel and energy problems in the UK appear to have receded and that allowed the pound sterling some respite. The UK will see a final confirmation of GDP for Q2 in a quiet week of data for the pair.
The AUD to GBP exchange rate is trading below the 0.5350 level with a risk that this could cap recent gains.
ACT and NSW to establish common rules for travel
The ACT and NSW states are set to establish common travel and quarantine requirements for fully vaccinated people, according to media reports.
ACT chief minister Andrew Barr expects fully vaccinated residents to be allowed to move freely through NSW in accordance with its state’s restrictions once the vaccination rates reach 80%. From mid-October and into November, the ACT anticipates matching NSW quarantine requirements or residents of that state coming into Canberra. The moves will help to streamline the Australian reopening and get its economy back on track.
New South Wales is confident it will hit the 90% first dose next week. Premier Gladys Berejiklian said:
“New South Wales has hit the 86.2% first dose and 61.7% second dose. We are inching closer to that 70% double dose figure, and 12 to 15-year-olds, 44.5% of them have already had a first dose, which is outstanding given the vaccine was only made available a few weeks ago.”
Aussie economy expected to bounce back after lockdowns
The Australian economy will experience a significant bounce once lockdowns in the country are eased, according to a global asset manager.
In a Q4 outlook update, Andrew Pease, head of investment strategy at Russell Investments, said that the local economy will “return to life” as restrictions are eased in October and November.
Mr Pease said that the strong recovery will be facilitated by consumer and business sectors which have continued to stay healthy and that the reopening of the international border will provide a further boost.
“Fiscal policy has supported the economy through the downturn and there is potential for further stimulus in the lead-up to the federal election, which is due before the end of 2022,” Mr Pease said.
The comments depend on a harmonious reopening among all states with the international borders but states such as Western Australia have been keen to pursue their own ideas on vaccination rates and reopening.
The UK economy is struggling with its own problems and that is seeing the pound sterling under pressure versus the Aussie dollar.
A surge in wholesale gas prices has put nine energy suppliers out of business and has sparked fears of a potential winter supply crunch. A shortage of HGV drivers has also seen panic buying on the forecourts of the UK petrol stations.
The Australian dollar has been strengthening in recent week but the rally has been muted and the UK is likely to still lead in the race to rate increases and stimulus tapering.