The Australian Dollar (AUD) struggled early week against the British Pound (GBP) falling to 0.5050 (1.9800) in a wash of risk off and Australian inflation data. Australian CPI rose to 3.8% y/y in the second quarter of 2024 from 3.6% in Q1 in line with market expectations with suggestions the RBA may start cutting from November. The Bank of England (BoE) cut to 5.0% as markets predicted with Governor Bailey saying “we should not adjust our course with every data surprise” as inflation is still in question whether it’s on course to decline to the 2.0% target. The GBP depreciated on the announcement with the cross sitting at 0.5120 (1.9530) midday.
The current interbank midrate is: AUDGBP 0.5098 GBPAUD 1.9615
The interbank range this week has been: AUDGBP 0.5047- 0.5120 GBPAUD 1.9528- 1.9810