Markets remain restless with uncertainty continuing to brew in the background around rising inflation and the war in Ukraine. The Australian Dollar (AUD), US Dollar (USD) has remained around recent ranges pivoting off 0.7200 areas for most of the past couple of weeks. The RBA hiked their interest rate to 0.85% form 0.35% a whole 25 points more than markets were widely predicting, sending Aussie buyers into a flurry, and improving the currency on the news to 0.7250. Consensus is that the central bank will raise again another 50 points in their July meeting “front loading” the need to bring down surging inflation. All eyes are on US inflation early Saturday with the month on month expected to rise 0.7% for May, with the year-on-year number remaining at 8.3%- The question being have we seen the peak of inflation? If this is the case overextended commodities may be about to soften along with the Australian Dollar.
AUD/USD pair this week:
The current interbank midrate is: AUDUSD 0.7177
The interbank range this week has been: AUDUSD 0.7156- 0.7245