The British Pound (GBP) grew another leg in overnight London and NY sessions with the currency lifting to 2.0210 (0.4950) against the Australian Dollar (AUD). Australian CPI printed at 2.5% vs 2.5% in December with the underlying inflation picking up slightly. This has dimed the view of aggressive rate cuts by the RBA evident in this week’s bear rally as investors position for softer cuts ahead. Technically the cross sits on the long-term support area at 0.4940 (2.0250), a break lower and we are posting the lowest weekly close since December 2015.
The current interbank midrate is: AUDGBP 0.4946 GBPAUD 2.0218
The interbank range this week has been: AUDGBP 0.4944- 0.5046 GBPAUD 1.9816- 2.0223