The Aussie dollar has continued to come off the boil over the past two days with the local currency now trading well and truly below 0.7500 vs the Greenback and 0.5800 vs. the Pound - both levels we wouldn't have anticipated this time last month. While the economic data has been slim this week, the impetus for the lower AUD is probably more macro than anything with improvements in growth and inflation occurring elsewhere while the Australian economy continues to be quite stagnant - case in point Wednesdays CPI figures which came in at just under expectations at 0.5% for the quarter.
AUD/GBP has been the worst performer (or best depending on which side you're on) with the currency pair down a whopping 8% or 500 points since late March. Whether this trend continues depends on a number of factors, but certainly accelerating growth in the U.K is adding fuel to rumours that the Bank of England will need to raise interest rates in the short term to contain this rampaging inflation. U.K GDP figures released tonight will obviously provide another glimpse into how the U.K economy is going, so those clients with GBP exposures may wish to book spot deals or forwards today to avoid risks of further AUD/GBP downside.