interbank midrate

FX News

AUD/GBP Transfer

The Australian Dollar (AUD) is drifting around the 0.5200 (1.9240) zone early Tuesday against the British Pound (GBP) having outperformed last week from 0.5115 (1.9550) levels. It’s a big calendar of data on the books this week- the Bank of England (BoE) are predicted to raise interest rates from 5.25% to 5.50% Thursday however CPI releases the day prior which could put a cat amongst the pigeons if the figure is above 7.0% forecast raising questions of further hiking not to mention pushing up the value of the GBP. Baileys post release will be key. UK Retail Sales and Manufacturing print at the end of the week. A push through 0.5225 (1.9140) looks unlikely.

Current Level: 0.5200
Support: 0.5025
Resistance: 0.5270
Last week’s range: 0.5114 – 0.5209

FX News

AUD/USD Transfer

The Australian Dollar (AUD) looks steady heading into the week against the US Dollar (USD) trading around the 0.6420 zone slightly down off the open. The cross trading well within its 7-week range. With long term support at 0.6350 for the Aussie and downside bias still in the air we expect the pair to retest this area over the week. A daily close below 0.6400 could signal further declines. To the topside 0.6510 looks distant.

Current Level: 0.6423
Support: 0.6700
Resistance: 0.6350
Last week’s range: 0.6384 – 0.6510

FX News

AUD/GBP Transfer

The Australian Dollar (AUD) extended higher over the week against a struggling English Pound (GBP) with price reaching 0.5195 (1.9245) into Friday. The Pound weighed down by softer industrial production, and dovish employment data. The UK economy shrank in July with figures confirming the economy is cooling as the tightening of monetary policy takes effect. GDP Fell -0.5% compared to the previous month after forecasts were for a -0.2% drop. Next week the Bank of England (BoE) will raise hike rates from 5.25% to 5.50%, we expect the GBP to push higher leading up to the release.

The current interbank midrate is: AUDGBP 0.5186 GBPAUD 1.9282

The interbank range this week has been: AUDGBP 0.5110- 0.5196 GBPAUD 1.9245- 1.9569

FX News

AUD/USD Transfer

Australian Job’s data jumped by a surprise 64,000 vs 25,000 expected with the participation rate rising from 66% to 67% reflecting a healthy jobs market. This took price in the pair from the weekly low of 0.6380 to 0.6460 post the result. The unemployment rate stayed steady at 3.7%. US CPI y/y accelerated yesterday printing at 3.7% vs 3.6% mainly due to a jump in energy prices. This perhaps proves that getting inflation lower needs a sharper slowdown in the economy. CPI rose 0.6% from July, the fastest pace in more than a year. Adding to the Fed’s problems, Retail Sales also rose in August 0.6% based on 0.1% forecasts. Next week we aren’t expecting the Fed to hike past 5.5% but the chances of a rise in the fourth quarter has risen to 50/50. Buying USD above 0.6400 looks the ticket right now.

The current interbank midrate is: AUDUSD 0.6433

The interbank range this week has been: AUDUSD 0.6359- 0.6459

FX News

NZD/GBP Transfer

We called it. A break above 0.4750 (2.1050) cemented further support for the New Zealand Dollar (NZD) to push higher with price reaching the 5-week high overnight at 0.4775 (2.0950). Softer UK data this week has rate hike expectations declining. The UK jobs report was rather dovish with no real growth over the past few months along with industrial production disappointing. We still however expect the Bank of England (BoE) to hike at next week’s policy meeting from 5.25% to 5.5%- this will be their 15th consecutive hike. We may see GBP strength develop towards the BoE Thursday.

The current interbank midrate is: NZDGBP 0.4761 GBPNZD 2.0951- 2.1003

The interbank range this week has been: NZDGBP 0.4714- 0.4773 GBPNZD 2.0951- 2.1213

FX News

AUD/GBP Transfer

The Australian Dollar (AUD) extended its move higher Monday to 0.5150 (1.9415) vs the British Pound (GBP) easing to 0.5142 (1.945) this morning. Notably the cross has broken the 0.5140 (1.9460) level which could signal further upside for the AUD as the week progresses. UK GDP for July prints this week which could weaken the GBP if we see the forecasted -0.2% reported. Certainly, around these levels buyers of GBP should consider. The long-term trend lower could resume any day.

Current Level: 0.5138
Support: 0.4630
Resistance: 0.4835
Last week’s range: 0.5064 – 0.5137

FX News

AUD/USD Transfer

The Australian Dollar (AUD), US Dollar (USD) stabilised around 0.6380 into the weekly close, the Aussie holding up pretty well in the face of deteriorating recent Chinese data. This week’s action has seen fresh US weakness giving room for risk currencies to push back- the AUD up at 0.6440 in early Tuesday. The recent strength of the “big” dollar is represented by an 8-week rally in the US Dollar Index, the strongest in the past 9 years. With US inflation printing this week expected to come in around 3.6% up from 3.2% y/y this may give the Fed reason to raise cash rate in the November meeting. The long-term bear trend is still the theme in the pair, perhaps a good time to buy USD if you have been waiting for a spike.

Current Level: 0.6427
Support: 0.6350
Resistance: 0.6880
Last week’s range: 0.6356 – 0.6479

FX News

AUD/GBP Transfer

Bank of England officials spoke of a drop to UK inflation and the likelihood of just one more hike to come in September during the week devaluing the Pound (GBP) from 0.5065 (1.9750) to 0.5130 (1.9490) into Friday trading. Tuesday’s RBA rate announcement came and went without fanfare, the RBA retaining their 4.10% interest rate. Australian GDP was also steady at 0.4% in the second quarter in line with estimates bringing back AUD buyers. Next week’s Aussie employment release is our focus, a handy barometer of inflation predictions.

The current interbank midrate is: AUDGBP 0.5112    GBPAUD 1.9561

The interbank range this week has been: AUDGBP 0.5064- 0.5138    GBPAUD 1.9462- 1.9746

 

FX News

AUD/USD Transfer

The RBA left their cash rate unchanged at 4.10% Tuesday, the third leave in a row. The central bank left the door open to further hikes if growth starts to rise again over the second half of the year and inflation remains stubborn. The Australian Dollar (AUD) edged lower post release against the US Dollar (USD) falling from around 0.6460 to 0.6370. The RBA acknowledged the Chinese economy, in particular mining resources which Australia buys massive quantities of, is heading into a period of decline. Australian Trade balance slipped to 8.04B compared to 10.05B expected adding to the uncertainty. Hovering around lows at 0.6370 right now- we are not sure how long the Aussie can tread water.

The current interbank midrate is: AUDUSD 0.6380

 

 

 

 

FX News

NZD/GBP Transfer

The British Pound (GBP) retreated overnight on fresh greenback strength, the New Zealand Dollar (NZD) finding support tracking to 0.4730 (2.1150) a 4-week high. The Bank of England looks increasingly likely to hold their cash rate in November based on comments by Bailey, saying rates are nearing the peak. Analysts are predicting however that the central bank will raise in September by 25 points for the last time. We still expect the NZD to weaken further over the mid-term and retest the prior low at 0.4630 (2.1590)

The current interbank midrate is: NZDGBP 0.4714    GBPNZD 2.1213

The interbank range this week has been: NZDGBP 0.4670- 0.4729    GBPNZD 2.1144- 2.1413