Range trading in the British Pound (GBP), Australian Dollar pair continue with prices around 0.5210 (1.9200) into Tuesday. We expect a little more volatility over the week with both the Bank of England (BoE) and the Reserve Bank of Australia (RBA) announcing rate statements. Both are expected to keep rates unchanged, but the RBA could be hawkish. This would be good for the AUD if rate policy rhetoric remains “higher for longer”. As for the BoE – members are expected to vote 7-2 in favour of a “hold”. UK inflation prints tomorrow and is predicted to dip from 2.3% y/y to 2.0% supporting cuts to come. We expect price to retrace to retest 0.5240 (1.9090) over the week.
Current Level: 0.5206
Support: 0.5155
Resistance: 0.5240
Last week’s range: 0.5170- 0.5223