The Australian Dollar (AUD) recorded a fresh 5 week low of 0.5195 (1.9250) against the British Pound (GBP) before pulling back to 0.5215 (1.9170) numbers early Friday. UK Composite PMI’s rose to 54.7 from 52.5 the previous month, the fastest pace over the last 2 years however, with a contracting economy- GDP falling from 5.0% to 1.3% over a matter of months we expect worrying times ahead. Meanwhile Australian GDP came in at 0.1% for the first quarter, softer than the 0.2% markets were expecting. RBA governor Bullock saying if inflation remains sticky the central bank may need to raise rates again. We expect the cross to retest 0.5235 (1.9100) levels based on Fib analysis.
The current interbank midrate is: AUDGBP 0.5210 GBPAUD 1.9193
The interbank range this week has been: AUDGBP 0.5192- 0.5238 GBPAUD 1.9091- 1.9259