The Australian Dollar (AUD) retraced midweek gains against the British Pound (GBP) trading from 0.5280 (1.8930) back to 0.5215 (1.9180) post the Australian CPI release. Inflation dipped to 5.4% in the 12 months to June compared to 5.5% in the 12 months to May 2023, Quarterly the rate is down to 6.0% ending June from 7.0%, lower than the 6.20% consensus. This marks the lowest figure since the third quarter of 2022 which has been primarily driven by a slowdown in food prices. Next week it’s all about central bank cash rate releases with both the Bank of England and Bank of Australia releasing. The RBA is expected to hike 25 points to 4.35% while the BoE may go large and raise 50 points instead of earlier forecasts for just a 25-point shift. Trendline support should hold at the 0.5235 (1.9100) level with price to retrace back towards 0.5280 (1.8940) zone.
The current interbank midrate is: AUDGBP 0.5244 GBPAUD 1.9069
The interbank range this week has been: AUDGBP 0.5214- 0.5282 GBPAUD 1.8934- 1.9180