The GBP AUD exchange rate was 0.10% higher on Thursday after fears over the UK leadership cooled. Boris Johnson will await his fate from the ongoing inquiry into his lockdown party and traders will go back to focusing on economic outlooks. The UK has a three-month GDP update released today with a 0.1% lower growth figure than last month.
The GBP to AUD trades at 1.8830 and will also have Aussie home loans data to consider.
Economic data on Friday will determine the weekly GBP v AUD
The Pound sterling versus the Australian dollar will have two sets of economic figures released today with Australian home loans and UK GDP into November.
Australian home loans are set to come in flat at 0% after last month’s -4.1% figure. The housing market has been strong this year, but threats of earlier interest rates has seen banks reducing their loan levels.
The UK will get to see three-month GDP figures into November and that is expected to show 0.8% growth, which is lower than last month’s 0.9%. The UK is coming out on top of the G7 countries this month, and was predicted to do the same in 2022, but the data will cover the period before the latest Omicron surge.
Staff isolation and Plan B restrictions have already hit data such as the PMI services index, which is a big part of the UK economy.
Restaurants and hotels had to cancel bookings as new restrictions came into play ahead of the holiday season.
The UK saw retail sales figures boosted by Christmas shoppers on Monday, but January could be a quieter month for the high street, with early footfall data already lower.
The Bank of England will have to decide what to do with interest rates and the International Monetary Fund suggested they should raise rates again. Inflation has been surging and the bank would normally raise rates, but a slowing economy gives them a headache.
UK looking to exit omicron variant, NSW still at record highs
The UK saw virus rates drop by 20k as some hope that the Omicron variant has now peaked in the UK.
In Australia, New South Wales has again seen a record number of cases at over 92,000. Victoria was also high at more than 37,000 positive tests, but Scott Morrison has announced a relaxation of restrictions for key workers as he aims to halt a staff shortage in these industries.
Western Australia has moved to further restrictions with its borders shut to the rest of the states and Premier Mark McGowan has increased proof of vaccination requirements for most venues.
The retail store giant Woolworths has also reinstated a two-product limit on various goods as food shortages hit stores down under.
The UK is also being hit by staff shortages and that is expected to cost the economy £35 billion, according to a study by the Centre for Economics and Business Research.
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