The Australian Dollar (AUD) monstered the British Pound (GBP) off the open yesterday reaching a whopping 0.5640 (1.7730) a 12-month high as conflicts in the Russian war put considerable pressure on the Pound and the UK economy. A corrective move early this morning saw a reversal in the cross to 1.7900 as European leaders said they would hold out on Sanctions of Russian energy exports preferring an alternative strategy to reduce Russian imports which Russia is a major global exporter. Upwardly revised UK Manufacturing PMI hit a 7-month high may have contributed to cushioning the Pound somewhat. Iron Ore and commodities continue to skyrocket with Iron ore trading at 1.56 por tonne a 6-month high. Looking ahead we have a slow week of economic data with just RBA Governor Lowe speaking tomorrow. In the meantime, we should continue to see wild “risk” swings continue.
Current Level: 0.5592 (1.7882)
Resistance: 0.5635 (1.8150)
Support: 0.5510 (1.7740)
Last Weeks Range: 0.5369-0.5585 (1.7903-1.8623)