GBP/AUD Exchange Rate Firms on UK Optimism
The Pound to Australian Dollar (GBP/AUD) exchange rate is punching higher this morning, as hopes for a strong economic recovery in the UK cheers Sterling sentiment.
At the time of writing the GBP/AUD exchange rate is trading at around AU$1.7671, up roughly 0.3% from this morning’s opening rate.
Pound (GBP) Soars as Aggressive Vaccination Programme Underpins Economic Hopes
The Pound (GBP) is on the rise this morning, with GBP exchange rates rallying on hopes that the UK economy will be able to make a strong recovery in 2021.
This optimism is mostly down to the UK’s vaccination programme, which continues to be a source of positivity in some otherwise dreary coronavirus statistics.
Following a record 343,000 doses of coronavirus vaccine being administered on Tuesday, the total number of people to have received at least one jab has now passed 4.6 million.
This has left UK ministers quietly confident that the government’s target to vaccination 15 million of the most vulnerable people in the UK by mid-February will be possible.
This in turn is spurring hopes that the government may be able to start easing lockdown measures before March, allowing for the UK economy to start firing on all cylinders again.
In addition economists suggest that a lot of pent up demand could see the UK’s recovery receive a jump start once people are willing to spend more freely again.
Australian Dollar (AUD) Supported by Upbeat Jobs Report
At the same time, whilst the Australian Dollar (AUD) may be giving ground against the Pound (GBP) this morning, it is otherwise well supported in broader trade by some surprisingly strong employment figures.
According to data published by the Australian Bureau of Statistics (ABS), unemployment in Australia fell from 6.8% to 6.6% in December, beating forecasts for a more modest drop to 6.7% and bolstering hopes that unemployment has now peaked.
James McIntyre, Aus & NZ Economist for Bloomberg Economics wrote:
‘Australia’s unemployment rate may have peaked as the labour market continues to heal from the damages wrought by the pandemic. Labour force participation hit a record high in December, as employment and hours worked recovered further.’
The larger-than-expect drop in unemployment was attributed to increased government spending and additional stimulus from the Reserve Bank of Australia (RBA), which helped to prop up the country’s economic recovery and bolster demand for labour.