The Australian Dollar (AUD) started the week off on the back foot dropping to 0.5170 (1.9350) against the British Pound (GBP) clocking a 6-week low. Australian CPI printed Wednesday at 5.6% y/y higher than the expected 5.3% and the previous quarters 5.2%. Investors bought up AUD on mass post the release on speculation a hike of their base interest rate is now a given for their Nov 7 meeting. The cross reached 0.5250 (1.9050) before falling back as flight to safety on global worries set in. Next week’s Bank of England policy report and rate announcement should see a pause by the central bank.
The current interbank midrate is: AUDGBP 0.5214 GBPAUD 1.9179
The interbank range this week has been: AUDGBP 0.5170- 0.5258 GBPAUD 1.9016- 1.9339