AUD/GBP has benefited from a weaker USD globally, as the markets digest the better-than-expected US Inflation & PPI data, which smoothed the perceived risk of ongoing aggressive interest rate hikes thus softening the USD. The main driver of the lower-than-expected US inflation number appears to be a drop in local gas prices, which is ironic considering the Global Energy crisis the world faces currently and the fact that Crude Oil prices are also still high. On the horizon for GBP/USD is tomorrow’s UK GDP figure due out, with anything less than the expected number causing further concerns for the UK economy, thus seeing the GBP/USD depreciate which could lend some support to the AUD/GBP cross on its move towards .5850. Local Australian Market news remains static, with eyes firmly on the China-Taiwan tensions in the region. Suggest any buying above .5800 remains a great short-term target for importers.
Current Level: 0.5823
Resistance: 0.5855/0.5880
Support: 0.5745/0.5788
Last Weeks Range: 0.5743-0.5836