The Australian Dollar reached a new November 2017 high of 0.5875 against the British Pound (GBP) in early week trading before giving back gains to 0.5740 (1.7430) midweek. UK Inflation rose to 10.1% Wednesday in July from June’s 9.4% after markets predicted 9.4%. This is the biggest read since 1982 with prices in Housing and utility costs leading the rises over 20% from 19.6% in June. This put the Pound under pressure over the past couple of days drifting to 0.5735 (1.7240) into Friday. The Bank of England have forecast their inflation to peak at 13.0% later this year before softening. Earlier Australian employment data came in poor with the participation rate falling to 66.4% the economy losing 40,000 jobs in July, while the unemployment rate clicked lower to 3.4% from 3.5%. The Aussie should outperform heading into the close.
The current interbank midrate is: AUDGBP 0.5793 GBPAUD 1.7265
The interbank range this week has been: AUDGBP 0.5736- 0.5884 GBPAUD 1.6993- 1.7432