Big moves in the Australian Dollar (AUD), British Pound (GBP) saw swings from 0.5110 (1.9560) to 0.5190 (1.9270) last week post Aussie GDP release. UK construction came in hot but failed to boost the GBP. Also of note, Chinese import data came in above expectation, the Aussie reacting positively.UK GDP for January prints Wednesday with reports pointing to a rise of 0.2% up from December’s -0.1%. Growth overall has been rising since October with the jobless rate falling. A positive report would ease concerns of a sharp recession. We think a retest of 0.5185 (1.9280) is on the cards this week.
Current Level: 0.5156
Support: 0.5130
Resistance: 0.5185
Last week’s range: 0.5110- 0.5190