Prices in the British Pound (GBP), Australian Dollar (AUD) cross bounced off long term highs to start the week from 0.5800 (1.7260) ,the GBP well supported to 0.5765 (1.7345) into early Thursday trading. Boris Johnson survived a party vote of no confidence overnight 221 out of 359 votes and will remain in office despite a clear dislike of his recent behaviour. The RBA raised their interest rate from 0.35% to 0.85% Tuesday, the release and statement more hawkish than expected pushing the Aussie higher posts release, but only for a while as equities turned red. Another big hike is predicted a few weeks away for the RBA as they “front load” to try and significantly bring down rising inflation. We predict the rate to go another 50 points in July reaching 1.35%. Next week it’s the Bank of England’s turn to hike rates, with the AUD struggling to hold recent gains amid uncertain market conditions we could see further improvements in the GBP develop.
AUD/GBP pair this week:
The current interbank midrate is: AUDGBP 0.5726 GBPAUD 1.7464
The interbank range this week has been: AUDGBP 0.5723- 0.5790 GBPAUD 1.7270- 1.7473