Risk flows this week has been British Pound (GBP) supported, against the Australian Dollar (AUD) where we have seen fresh 2023 lows around 0.5300 (1.8870) develop. Australian CPI for the first quarter of 2023 printed around expectations of 1.3% to 1.4% dropping the year-on-year figure from 7.8% to 7.0%. The RBA held interest rates at 3.6% in April and March with speculation that if the inflation read came in hot they were likely to hike further in the coming months. This clearly hasn’t been the case as argument for further hikes has surely been put to bed. Next week’s RBA cash rate and statement should be a non-event. A daily close below 0.5220 (1.9150) will see the pair post March 2020 lows and the continuation of the long-term bear theme.
The current interbank midrate is: AUDGBP 0.5295 GBPAUD 1.8857
The interbank range this week has been: AUDGBP 0.5283- 0.5398 GBPAUD 1.8523- 1.8928