The Australian Dollar (AUD) stabilised around the 0.5880 (1.7000) areas over the last few days against the British Pound (GBP) but looks to make further moves north. Monday’s daily close at 0.5925 (1.6880) is the highest since September 2017. Looking at the calendar this week we have key RBA and GDP q/q releasing. The Central Bank will raise rates by 50 points to 2.35% later today, if they raise to hard the fear is they could tip the economy into recession. The economy feels the impact of high rates fast unlike other economies because around 60% of home loans are variable not fixed. 2.35% is not outside the realms of being “unreasonably” high – the last time was during 2014 after coming down from the fallout of the GFC at 4.75% in 2011. The cross is setting up to post a fresh high this week.
Current Level: 0.5885 (1.6992)
Resistance: 0.5930 (1.7050)
Support: 0.5865 (1.6860)
Last Weeks Range: 0.5865-0.5926 (1.6873-1.7049