The Australian Dollar (AUD) has outperformed this week across the main board of currencies and against the British Pound (GBP) coming from 0.5620 (1.7800) at the weekly open extending to 0.5775 (1.7315) Wednesday. Aussie inflation data came in hot at 7.8% y/y ending December 2022 compared to 7.3% predicted highlighting the RBA still has a way to go to tame the beast. Hikes of 25 points at the next policy meetings in February and March looks to be the preferred solution. First we have the Bank of England policy meeting next week with markets predicting a 45-point hike. The AUD should remain well supported through to next week’s decision.
The current interbank midrate is: AUDGBP 0.5726 GBPAUD 1.7464
The interbank range this week has been: AUDGBP 0.5614- 0.5775 GBPAUD 1.7315- 1.7810