The English Pound (GBP) recovered off the recent low of 1.7170 (0.5825) to gain on the Australian Dollar (AUD) the second week running reaching 1.7600 (0.5680) early this morning. Risk off mood causing US equity prices to close lower led to the rebound as well as rising UK inflation. UK CPI printed at 7.0% for March increasing from February’s 6.2%, the highest it’s been since March 1992 due to massive rises in energy and fuel prices. The UK will look to continue with its rapid tightening cycle, those BoE members who were dovish the last hike may not be now. Looking ahead we have Aussie employment data which forecast the unemployment rate to go under 4.0% for the first time this century. On the chart Iron ore looks to push back above the 150.00 area taking the AUD along for the ride, look for a retest of the weekly open at 0.5725 (1.7470) over the coming days.
The current interbank midrate is: AUDGBP 0.5683 GBPAUD 1.7596
The interbank range this week has been: AUDGBP 0.5678- 0.5747 GBPAUD 1.7398- 1.7610