The Australian Dollar (AUD) shot up early this morning post the Fed inflation read, posting 0.6720 against the US Dollar (USD) despite US equity markets falling. US inflation for March came in at 0.1%, moving the y/y figure from 5.1% to 5.0% meeting expectations. Fed minutes from the last meeting in late March released overnight highlighting just how unstable and uncertain markets are. Recent turmoil in the recent bank closures have increased the chances of the Fed continuing with their tightening policy. The Fed will closely monitor data action ahead of the May 3rd meeting. At the moment we expect a 25-point hike. With Aussie unemployment data and later US Retail Sales to print we may see price shifts into the weekly close. Overall, the Aussie remains heavy.
The current interbank midrate is: AUDUSD 0.6691
The interbank range this week has been: AUDUSD 0.6618- 0.6722