The AUD has struggled to perform over the last week, with weaker than expected GDP growth confirming the worst economic conditions since the recession of the 1990’s. The RBA warns inflation remains stubbornly high and interest rates will ‘remain higher for longer’. This should offer support to the currency but weakening economic conditions undermine the currency. The softer economy in the US and Europe, also impact commodity prices negatively, through lower demand, adding to the conundrum.
The current interbank midrate is: AUDUSD .6740
The interbank range this week has been: AUDUSD .6680 – .6790