The Australian Dollar (AUD) reversed off 1.9140 areas Monday back to 1.8990 against the British Pound (GBP), UK data undermining the Pound. Although Retail Sales Friday turned in a positive result at 0.7% vs 0.2% for June Manufacturing PMI has undone any momentum the GBP had. Figures show a considerable slowing of business and manufacturing output, the worst in 6 months. We see odds of a hike from the Bank of England (BoE) of 50 points now slim in the aftermath of this cooler data with calls for just 25 points to 5.25% on August 3rd. A light data docket in the cross should see the GBP weaken further confirmed by higher highs and higher lows on the chart.
Current Level: 0.5251 (1.9043)
Resistance: 0.5405 (1.9340)
Support: 0.5170 (1.8500)
Last Weeks Range: 0.5189-0.5305 (1.8849-1.9271)