The English Pound (GBP) climbed through the 1.7000 (0.5880) level overnight to reach 1.8100 (0.5525) a fresh high against the Australian Dollar (AUD). Recent economic data out in the UK hasn’t exactly been GBP supportive of late but the GBP has performed well despite this over the past 3 weeks outperforming the kiwi. Overnight markets focused on parts of the UK budget being reversed and tax cuts deferred. This includes more than 20B worth of unfunded tax cuts including corporate tax. Earlier UK GDP fell by -0.3% in the month of August after 0.1% growth in July confirming an underlying trend lower over the last 3 months suggesting a recession could be close. UK inflation prints next week, expected to stay up around the 9.9% y/y mark. With the cross moving off 0.6300 levels this time 3 weeks back clearly this shows how good these levels are to sell GBP.
The current interbank midrate is: AUDGBP 0.5565 GBPAUD 1.7969
The interbank range this week has been: AUDGBP 0.5520- 0.5757 GBPAUD 1.7369- 1.8114