The Australian Dollar (AUD) punched through 0.5195 (1.9250) resistance in overnight trading vs the British Pound (GBP) on its way to post 0.5225 (1.9135) an 11-week high. A short week meant we have seen little meaningful data published in the cross. Last week’s Aussie CPI release saw a pause to inflationary pressures, the RBA not to happy with the result. While the move from the central bank is likely to be a cut this won’t happen for some time. Wage growth which is closely corelated with inflation which sits at 4.2% needs to start tracking higher. We need to see a break back below 0.5200 (1.9250) to confirm further downside in the pair.
The current interbank midrate is: AUDGBP 0.5206 GBPAUD 1.9208
The interbank range this week has been: AUDGBP 0.5161- 0.5226 GBPAUD 1.9133- 1.9375