The British Pound (GBP) broke into new territory midweek against the Australian Dollar (AUD) slipping past the key level at 1.9040 (0.5250) on its way to reach 1.9180 (0.5215) the January 2022 level. Of note the Pound has outperformed the Aussie 4 months straight ending May. A solid break through 1.9220 (0.5200) could signal further momentum for the GBP. Central bank divergence should continue into the end of the year with the Bank of England predicted to hike interest rates again in June, August and September. Next week’s RBA release should see a “no change” from the 3.85% more than likely putting the AUD underweight.
The current interbank midrate is: AUDGBP 0.5250 GBPAUD 1.9047
The interbank range this week has been: AUDGBP 0.5213- 0.5303 GBPAUD 1.8855- 1.9182