The heavy risk off mood this week in markets attributed by discouraging Fed comments and upward pressure to inflation expectations has seen the US Dollar (USD), Australian Dollar (AUD) cross slide to 0.6600 levels. Australian consumer confidence remains poor with no real recovery in sight from the looming recession. Confidence printed below 80.0 which was below the number for the entire period between 2020 to 2022 showing ongoing strains with inflation and monetary policy. Yesterday’s CPI Australian printed at 1.4% for the 1st quarter of 2023 up slightly from 1.3% in Dec 2022 but year on year down from 7.8% to 7.0% putting to bed any looming forecasting of further RBA rate hikes. The news sent to Aussie lower, mixed in with dips in metal pricing and a sharp selloff in the Chinese Yuan. Next week’s RBA cash rate, Fed cash rate and Non-Farm Payroll releases should give us plenty of scope for decent moves.
The current interbank midrate is: AUDUSD 0.6603
The interbank range this week has been: AUDUSD 0.6590- 0.6705