Early week wobbles in the British Pound (GBP) were replaced with underperforming risk currencies with the Australian Dollar (AUD) on the back foot. Price extended to 0.5675 (1.7620) just shy of the fortnight low with the currency looking at lengthening out. This week’s RBA minutes later today should be more of the same rhetoric of how the economy plans to bring down rising inflation. Governor Lowe expects inflation to peak around 7.0% by the end the year. Expectations are for another rise to their cash rate of 50 points at their July and August meeting. UK inflation prints tomorrow and is predicted to reflect further squeezes to consumer prices and 9.1% untick. It wouldn’t surprise us if we saw the 3 month daily low tested at 0.5620 (1.7800) this week if markets remain risk averse.
Current Level: 0.5673 (1.7627)
Resistance: 0.5780 (1.7820)
Support: 0.5610 (1.7300)
Last Weeks Range: 0.5663-0.5778 (1.7307-1.7658)