The GBP AUD exchange rate rallied from recent lows as it seeks to recover from an Aussie dollar correction. Traders had unwound bearish Aussie bets as the country moved to a reopening and reassessed the potential for an RBA rate hike. The pound is recovering as investors feel the recent bearishness may be overdone.
The AUD GBP exchange trades at 1.8380 ahead of the latest Australian consumer data from Westpac.
Australian economy ranked last in climate response
The Australian government’s response to climate was ranked last in an assessment of 60 countries released at the COP26 summit in Glasgow.
The Morrison government’s lack of policies, high greenhouse gas emissions, weak targets, low levels of renewables and high levels of energy use, saw the country given a rank of 54 among individual countries. Australia’s resources minister, Keith Pitt, also said this week the country would continue to produce as much coal as other countries required.
Meanwhile, Australia has announced plans to encourage the sale of electric cars after the country received criticism during the Cop26 summit for not doing enough.
The new measures announced by prime minister Scott Morrison include a A$250m plan to work with private enterprises on the creation of 50,000 charging stations. Morrison previously opposed a push for e-cars, but said his plan aims to facilitate the market for them, rather than be a subsidy for multinationals.
“The costs of technology are coming down, and that means the choices available to Australians and right around the world are becoming more accessible, so our plans are all about supporting those choices,” Mr Morrison said.
“Our plans aren’t about sending a lot of taxpayers’ money off to big multinationals to get costs down. They’ll do that themselves. They have a keen interest in doing that,” he added.
The GBP v AUD awaits the latest Westpac consumer confidence figures and analysts will get a look at the consumer mood near the end of lockdowns. A higher reading will give the Aussie dollar a boost.
Fears over gas shortages with ‘arctic air’’ approaching
There were fears of further gas problems in the UK as a potentially freezing winter looms for stretched supplies.
The latest warnings come as gas reserves across Europe have reached a 10-year low and predicted lower temperatures look set to increase demand further. At the start of the year, the northern hemisphere was hit by unusually cold weather events that saw demand for gas increase sharply. Now with lower backup supplies, further demand with cold winter weather could add pressure to already tight supplies.
Dr Adi Imsirovic, at the Oxford Institute for Energy Studies, said: “If we have a really cold winter, we could be pretty tight. It’s just the perfect storm of a lot of demand and all these weather-related issues.”
There have also been warnings of “Arctic air” for the UK and Europe, according to early weather patterning by US forecaster DTN.
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