It has been a volatile start to the week in the British Pound (GBP), Australian Dollar (AUD) cross with prices very shifty. UK Manufacturing Monday printed below expectations at 51.5 compared to 52.3 sent the GBP lower to 1.9450 (0.5140) off 1.9530 (0.5120) before reversing losses back to 1.9560 (0.5110) towards yesterday’s RBA policy meeting. The Australian Central Bank left rates unchanged at 4.35% as we predicted and held tight on their “hawkish” tone blaming high inflation and a healthy labour market. This bought AUD buyers back sending prices to 0.5140 (1.9460) in early morning trading. Aussie CPI y/y prints later today expected to dip from 3.8% to around 2.8%- anything higher than 2.8% should rally the Aussie further.
Current Level: 0.5136
Support: 0.5110
Resistance: 0.5170
Last week’s range: 0.5101- 0.5155