Daily Commentary BY THE CURVE TEAM –

Australian Vaccine Hurdle

9th of April, 2021

An update to vaccine regulatory approval will throw a spanner to Australia’s vaccination plans.

Australia have followed other countries’ lead by limiting the use of the AstraZeneca vaccine. In yesterday’s commentary we mentioned that Britain had halted the use of AstraZeneca for those under 30.

This was less conservative than many other European countries who had banned the vaccine entirely. Australia has opted to disallow its use for those under 50.

The reason for the change is that the minor incidence of blood clotting from the vaccine have proven more likely in younger people. As younger people are at lower risk of significant health ramifications from getting covid, the risk of blood clotting is viewed as greater than covid.

Fortunately, a third vaccine- Novavax has produced promising interim results. It confirms the sentiment that the AstraZeneca update will simply slow the distribution rather than stop it entirely.

Following on from yesterday’s commentary, google searches for Australia to New Zealand flights are already up. Although it may not directly provide a boost to Australia’s economy given Australians usually spend more in New Zealand than vice versa, but it bodes well for confidence and further border openings.

In the US, Fed Chair Powell again made dovish remarks at a speech to the IMF. He re-affirmed that the recovery would need to be sustainable and that they were weary of the impact of low income workers, who make up the bulk of unemployed from covid.

Josh Stewart

Associate - Money Markets