The Australian Dollar (AUD) has posted the lowest weekly close of 0.5018 (1.9928) against the British Pound (GBP) since April 2020 to end the week. It didn’t take long Monday for the AUD to pounce back and regain losses to 0.5060 (1.9760) this morning. The RBA will leave interest rates unchanged today at 4.35% but may highlight the need to start easing policy as early as February. Swati Dhingra, a Bank of England (BoE) policymaker voiced concerns over the weekend that the elevated interest rates are stifling household spending and discouraging economic growth arguing that the current 4.75% interest rate is far to high and damaging expansion. We think the AUD/GBP may retest the 0.5080 (1.9700) area.
Current Level: 0.5045
Support: 0.5000
Resistance: 0.5210
Last week’s range: 0.5006- 0.5126