The Australian Dollar (AUD) extended its run higher against the British Pound (GBP) reaching 0.5200 (1.9225) post Monday’s open off last week’s 0.5110 (1.9570). This move wasn’t to last with the Pound clawing back losses into Tuesday to 0.5170 (1.9340). Tomorrow’s Australian CPI release could strengthen the argument for further policy restrictions if the number comes in higher than 2.1% (September) as we predict. We expect the cross to retest 0.5215 (1.9170) this week.
Current Level: 0.5173
Support: 0.5080
Resistance: 0.5215
Last week’s range: 0.5110- 0.5200