GBP AUD at Risk of Further Losses Ahead of Data

GBP AUD at Risk of Further Losses Ahead of Data

The GBP AUD exchange rate has been higher for two consecutive weeks but the bounce has not shown strength. The pound sterling could see further losses with UK unemployment and inflation ahead this week. First up will be the RBA minutes of their recent meeting. The UK also has political risk with the threats of triggering Article 16.

The GBP to AUD trades at 1.1825 ahead of the RBA minutes, while there is also a speech due from governor Lowe.

Australian government slammed for weak climate efforts in Glasgow

The Australian government has been under attack from many sides for its ‘business as usual’ approach to the COP26 talks.

Ray Minniecon, of the Indigenous Peoples Organisation, said:

“We leave Cop26 deeply ashamed and embarrassed by the Australian government’s behaviour and attitudes to the deep concerns we have about the climate crisis. We are angry that their solutions are based on the premise of a ‘business as usual’ mentality which will continue to harm our peoples and all Australians on the lands and waters we all love.”

In recent weeks Australia has said that it will still be selling coal for decades as long as there is customer demand.  The Climate Council’s research director Simon Bradshaw said:

“The message from the rest of the world to Australia is clear: come back in 2022 with a much stronger target for 2030 and a plan to move beyond coal and gas. The sooner the Australian Government steps up with a plan to drive down emissions this decade, the sooner we can start unlocking Australia’s unrivaled opportunities for new jobs and prosperity through renewable energy and clean industries.”

Australia left the summit with a so-called “colossal fossil” award for the worst efforts to commit to the talks.

Australian adds Taiwan to its anti-China rhetoric

The Australian government seems to love a spat with its largest trade partner.

The latest comments from the Australian government came from the defense secretary who warned that Australia would join the US if China invaded Taiwan. That led to serious retort from a former China official who warned of ‘armageddon’.

Victor Gao, a former translator for the Chinese leader, warned western powers to stay out of China’s ambitions for the territory. The island nation broke away from the mainland after the civil war in 1949 but President Xi Jinping has stated he plans to take over Taiwan by 2027 as part of the ‘great rejuvenation of China’ using military force if necessary.

The United States said they would oppose any such move from China and Australia’s government chimed in.

Defence minister Peter Dutton said it would be ‘inconceivable’ that Australian troops wouldn’t back up the US if such a scenario occurred. The comments are not necessary in the present moment, and it only brings the risk of retaliation from China. The Australian economy has been kept on life support by its exports to China during the pandemic.

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