The British Pound (GBP) extended moves higher against the Australian Dollar (AUD) Monday to 0.5585 (1.7900) from 0.5730 (1.7460) mid last week as risk sentiment waivers. UK inflation for October grew to 11.1% y/y from 10.1% in September higher than the 10.7% forecast representing the biggest read since October 1981 with the main drivers being energy and food prices. Meanwhile Aussie job’s numbers showed 32,000 new people entered the workforce in October up from estimates of 15,000. The Unemployment rate dropped to 3.4% from 3.5% but with a slight drop to the participation of 66.5%. Overall, the data shouldn’t alter the RBA tightening course with more 50-point hike shifts to continue. We think a retest of the prior low at 0.5510 (1.8150) may come into play over the week.
Current Level: 0.5583 (1.7911)
Resistance: 0.5715 (1.8100)
Support: 0.5520 (1.7500)
Last Weeks Range: 0.5607-0.5728 (1.7458-1.7834)