Thousands of Sydney residents have flocked to a prominent horse race as Australia's biggest city emerges from a strict Covid-19 lockdown and the nation begins to live with the coronavirus through extensive vaccination, Reuters reports.

Up to 10,000 fully vaccinated spectators can now attend races such as The Everest in Sydney, Australia's richest turf horse race, and the country's most famous, Melbourne Cup Day, on November 2.

New South Wales state, of which Sydney is the capital, has reached its target of 80 per cent of people fully vaccinated, well ahead of the rest of Australia.