This week’s main attraction is a double header of central bank action with the Bank of England (BoE) and the Reserve Bank of Australia (RBA) both releasing policy statements and cash rates. The Aussie kicked back from 0.5180 (1.9300) mid-week closing around the 0.5275 (1.8960) area extending its run to a 17-week high. Both central banks should retain policy, BoE at 5.25% and the RBA at 4.35%. We see a small chance the RBA could hike to 4.6% but this would be a gutsy move. The BoE could start conversations around cutting sooner than later but will most likely confirm a wait and see approach based on incoming data over the next couple of months. Also of note is monthly UK GDP for March with no improvement from 0.1% expected. We favour a retest of 0.5305 (1.8850) over the week
Current Level: 0.5271
Support: 0.5235
Resistance: 0.5290
Last week’s range: 0.5179- 0.5279