A large move in the Australian Dollar (AUD), English Pound (GBP) cross over the week has seen price shift from 0.5610 (1.7820) to 0.5825 (1.7170) late Thursday as risk conditions improved and the RBA came out hawkish . The Bank of England raised interest rates to 1.0% overnight from 0.75% the highest level since 2009 and the fourth in as many policy meetings. The bank signalled they would move cautiously in the coming months warning of a possible recession based on an inflation ballooning out of control with predictions it could peak at 10%. Questions are being asked if the BoE should be more aggressive with hikes and “frontload” larger clips? The GBP got a push post the BoE statement reversing flow to 0.5740 (1.7420) early morning. Earlier in the week the RBA raised their cash rate to 0.35% from 0.10% in a surprise shift of 25 points and not the 15 punters were expecting. The central bank trying to stay ahead of the curve and halt rising inflation. Medium term bias could be AUD supportive.
The current interbank midrate is: AUDGBP 0.5754 GBPAUD 1.7379
The interbank range this week has been: AUDGBP 0.5600- 0.5821 GBPAUD 1.7179- 1.7855