The Australian Dollar (AUD) has had a bumper week against the English Pound (GBP) extending moves higher midweek to reach a fresh 4 week high of (0.5265) 1.8990 into Friday. The Bank of England interest rate remained unchanged at 5.25% overnight in a 7-2-member vote devaluing the GBP as investors suggest the central bank could start cutting rates from August. Certainly, early week CPI data confirms this with the UK inflation rate falling into the BoE target zone at 2.0% y/y from 2.3% in April. Meanwhile the RBA also released their cash rate which remains steady at 4.35% with the central bank leaving the door open for potential to hike rates further if price pressures remain high. The upside trend in the AUD should get stiff resistance towards 0.5290 (1.8900)- prices have not been this high since late January.
The current interbank midrate is: AUDGBP 0.5256 GBPAUD 1.9025
The interbank range this week has been: AUDGBP 0.5198- 0.5265 GBPAUD 1.8993- 1.9236