The Australian Dollar (AUD) bull run over the past few weeks came to an end posting 0.5815 (1.7200) a new 12 high before bouncing to 0.5750 (1.7420) over the week’s action. The BRC (British Retail Consortium) release highlighted food inflation has risen 7.0% over the past year, the biggest jump since 2009 stretching the spending power of consumers even thinner. This data will certainly help push up expectations of a Bank of England (BoE) rate increase at their next meeting on the 4th of August.- whether they raise 25 points, or 50 points remains uncertain. Aussie CPI q/q came in at 1.8, raising the 1y/y number ending June from 5.1% to 6.1% – rising prices in food and energy the main offenders. This should set up the RBA for further rises to their cash rate with 0.50% predicted at Tuesday’s meeting. Expect decent price moves over the week in this cross.
The current interbank midrate is: AUDGBP 0.5745 GBPAUD 1.7406
The interbank range this week has been: AUDGBP 0.5736- 0.5807 GBPAUD 1.7218- 1.7433