The Euro struggled earlier in the week falling to 1.4500 (0.6900) levels against the Australian Dollar (AUD) before recovering Thursday reaching 1.4600 (0.6850) early Friday. The expected Fed hike and CPI read sent equity prices higher supporting the Aussie mostly. German GfK consumer confidence sank to2 a record slow as JP Morgan downgraded their Eurozone economic forecasts. Australian CPI q/q came in at 1.8%, raising the year-on-year number ending June 2022 from 5.1% to 6.1% – rising prices in food and fuel the main drivers. The data should push the RBA to hike rates aggressively by 0.50% or more at Tuesday’s meeting.
The current interbank midrate is: AUDEUR 0.6857 EURAUD 1.4583
The interbank range this week has been: AUDEUR 0.6755- 0.6894 EURAUD 1.4504- 1.4803