The pound fell sharply yesterday after the UK inflation rate jumped from 7% to 9% – its highest level since 1982.
The country’s trimmed mean CPI, which is the Reserve Bank of Australia’s (RBA) preferred measure of inflation, rose to 2.1%. This was 0.3% above forecasts and the highest reading in almost six years.
This boosted expectations that the RBA would tighten monetary policy at its next meeting, which in turn supported AUD exchange rates.
The ‘Aussie’ also gained ground off the back of Australia’s latest retail sales figures, which showed that sales unexpectedly grew by 1.3% in September.
This week, the Australian dollar has fallen back after the RBA left interest rates unchanged at its monetary policy meeting, and the central bank pushed back against the hawkish pricing of an earlier-than-expected rate hike.
Australia’s balance of trade figures later this week may see the ‘Aussie’ soften further, as analysts expect the country’s trade surplus to narrow.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)