The Australian Dollar (AUD) extended its run higher against the US Dollar (USD) reaching 0.6790 this morning but failed to hold this level slipping back to 0.6755 at smoko. US Inflation was softer than expected weakening the USD overnight with June’s print at -0.1% compared to 0.1% expected. Year on year also ticked lower to 3.0% from 3.3% and below the predicted 3.1%. Bets have risen that the Federal Reserve will cut their interest rate in September. The Aussie has also done well of late from recovering commodity and equity prices. With the RBA one of the only G10 nations to not instigate rate cuts we could see further rises in the currency.
The current interbank midrate is: AUDUSD 0.6763
The interbank range this week has been: AUDUSD 0.6723- 0.6797