The GBP AUD exchange rate was -0.10% lower on Monday as the UK economy awaits the release of employment figures. Markets are looking for a measly 5k jobs added to the UK, with only 10k in the previous month. Higher costs for business are slamming the brakes on hiring.
The GBP to AUD trades at 1.7678 as it awaits the latest UK economic data.
UK minister solves cost-of-living issue with ‘better paid job’ advice
Tory MP Rachael MacLean suggested that UK citizens struggling with the cost-of-living crisis should work more hours or get a better paid job.
She added: “Of course, it’s an individual situation depending on that particular family situation but that’s why the job centres exist, that’s why the work coaches exist. That’s why we put the support into those job centres to work with those individuals on their own individual situation.”
The comments will not go down well and highlight the confusion amongst MPs to fix the action and not the reaction.
Pm Boris Johnson has promised more support but has been light on details so far.
“Of course there’ll be more support in the months ahead as things continue to be tough with the increase in the energy prices,” he said.
The problem for UK citizens in finding that better paid job is that the country only added 10k jobs last month and today’s figures are expected to show an increase of 5k jobs.
Hirers are slamming the brakes on employment due to the higher costs they are incurring, but also because they know that employees have the power in wage negotiations as inflation soars in the country.
The unemployment rate is expected to stay at 3.8% in the UK as the post-lockdown recovery bounce fades away and reality sets in.
Last week saw growth slowing to a halt as consumers reign in their spending due to the rise in energy-related costs. Wednesday will also see the release of inflation figures for the UK with a year-on-year number of 9.1% expected.
Chinese spy ships rattle Australian defence strategy
The latest tension between China and Australia was the appearance of a Chinese spy ship in Australian waters.
Australian Security Policy Institute’s Michael Shoebridge says to have a Chinese spy ship turn up off the coast of Western Australia, “almost as a matter of routine”, says that Australia’s “security environment” has changed.
Detection of Chinese spy ship shows Australia’s ‘security environment’ has changed
Mr Shoebridge said the problem is that it’s becoming “less and less unusual”.
“This is a really out and proud Chinese military, they’re willing to intimidate and coerce,” he told Sky News.
“And the other development we’ve got to join the dots to here is Solomon’s security deal with Beijing which makes the PLA Navy operating closer to Australia more routinely, like this, a part of the new normal.”
Australia’s relationship is continually strained with its largest trading partner and that is always a risk to the Australian dollar.