The Australian Dollar (AUD) made attempts to push past resistance at 0.5795 (1.7260) Friday against the British Pound (GBP) but failed to enter new territory into fresh long-term levels, reversing to 0.5750 (1.7400) Monday. Prices this morning were back at 0.5775 (1.7320) after equity flows were not AUD supportive. Last week’s bumper CPI published at 9.4% a 40 year high as the cost of living for consumers got tougher. Talk from the Bank of England is that a further 50 points move higher in the cash rate is needed to reel it in. The central bank has already had 5 consecutive rises, but the bank will need to commit to its promise of bringing down inflation back to its 2% target. Aussie CPI releases Wednesday and is predicted to hold at 5.1% y/y. On the chart- anything past 0.5830 (1.7150) signals multi year highs.
Current Level: 0.5766 (1.7343)
Resistance: 0.5805 (1.7800)
Support: 0.5620 (1.7230)
Last Weeks Range: 0.5693-0.5811 (1.7206-1.7565)