The AUDGBP exchange rate started the week 0.13% higher after last week’s slump on dismal Australian employment data. Tomorrow will see meeting minutes released from the Reserve Bank of Australia’s latest interest rate meeting. The BoE will set out their own plans for monetary policy on Thursday and sandwiched between those days will be the latest flash PMI data for UK business activity in September.
The AUD to GBP exchange rate still trades below 0.5300 after a slump last week on the worse than expected jobs data.
Victoria lays out roadmap as cases rise in the state
Victoria state premier Daniel Andrews has laid out the roadmap for Victoria’s reopening.
At 80% single doses, “on or about” 26 September, Melburnians will be able to go outside again for outdoor activities and to socialise with friends, but there are to be limits on household numbers.
“The notion of opening this place up very quickly at 70% or 60% simply cannot be done,” Andrews said.
“It will be in a staggered and measured … way. But we are opening up, no doubt about that, and there will be no turning back. We have got to normalise this, we have got to pass through and beyond this pandemic. Vaccination is critically important, 80% is critically important, but we won’t stop at 80%, we will continue to urge people and indeed to require some people to get vaccinated, to drive that number as high as we possibly can drive it,” he added
Meanwhile, the Burnett Institute’s modeling has been made publicly available and it forecasts a peak of cases in mid-December, with a peak in hospital admissions at the end of December.
UK economic growth at fastest rate in the developed world
The latest OECD data showed that the UK economy has grown at the fastest rate in the developed world in the second quarter of 2021.
The data released by the Organisation for Economic Co-operation and Development said that Britain’s 4.8% growth between April and June outpaced that of China and the US.
In China and the US posted growth that was less than half of the UK figures, with China’s economy rising by 1.3% and the US rising by 1.6%. The OECD data also reported that the UK had the highest growing economy in the second quarter of 2021 of all G20 countries.
The UK’s strong performance has been attributed to the country’s rapid rollout of vaccinations that allowed the UK to reopen and jump-start the all-important services sector in the country,
Last week saw strong employment data in the UK with the unemployment rate dropping to 4.6%, payroll numbers at pre-virus levels, and vacancies at a record high. Alongside last week’s higher inflation data, the BoE will feel some pressure this week to outline their strategy for removing stimulus.
The AUD to GBP trades under the 0.5300 level and will aim for the yearly lows near 0.5225.