Australian Inflation

The Pound to Australian Dollar exchange rate reached its highest since the opening of Russia's full-scale invasion of Ukraine in ANZAC Day trade but would be susceptible to sharp corrective losses almost immediately after if Australian inflation is anything like as stubborn as that in the UK. 

The Pound to Australian Dollar exchange rate remained near three-month highs in mid-week trade after local data queried elevated market-implied expectations for the Reserve Bank of Australia (RBA) cash rate, which could yet stoke further political controversy over the pathway of borrowing costs.

The Australian Dollar overlooked a climbing coronavirus toll and related disruption Wednesday as July's Federal Reserve (Fed) statement and rising precious metals offered the antipodean unit a glimpse of April 2019 highs. 

The Australian Dollar was hammered on Wednesday as traders dumped the Antipodean currency after official data revealed surprise falls in both key measures of inflation during the first-quarter, raising pressure on the Reserve Bank of Australia(RBA) to cut its interest rate. 

The Australian Dollar rose broadly Wednesday after inflation surprising on the upside for the final quarter, although gains could prove short-lived because the jury is still out on whether an Reserve Bank of Australia (RBA) interest rate cut is in the cards for the months ahead.

The Australian Dollar stumbled Wednesday after an eighth consecutive inflation disappointment vindicated the market for its pessimism about the outlook for interest rates down under, and as data suggested the Chinese economy is beginning to creak under the pressure of U.S. tariffs.