The Australian Dollar (AUD) broke below the 2-week recent range this morning against the British Pound (GBP) to 0.5250 (1.9055) targeting the 50% retracement area around 0.5235 (1.9100). All eyes this week will be on UK CPI y/y with predictions the number will drop from 3.2% to 2.1% which will make or break a potential June rate cut. Currently we see rate cut chances at 50/50. The bank’s target range is 2.0% so we are going to get close, buckle in. UK Retail Sales is later in the week but could surprise lower.
Current Level: 0.5247
Support: 0.5210
Resistance: 0.5295
Last week’s range: 0.5253- 0.5289