The British Pound (GBP), Australian Dollar (AUD) cross settled around 0.5750 (1.7400) through the latter half of the week closing around this level. Risk sentiment post Friday’s Non-Farm Payroll release sent equities lower Monday, the Aussie already on the back foot falling to 0.5695 (1.7560) in early Tuesday. To be fair the GBP is doing reasonably well with news of late not being overly Pound supportive. Manufacturing was poor, the weakest since 2020 and the Bank of England will extend its gilt buying to 10B per day this week. The recent hawkish rhetoric by chancellor Kwarteng’s brought forward mini budget fanned speculation back to markets of a larger hike at the next BoE meet of November 3rd. A push past 0.5620 (1.7800) areas could signal a broader decline for the Aussie.
Current Level: 0.5674 (1.7624)
Resistance: 0.6040 (1.7880)
Support: 0.5595 (1.6550)
Last Weeks Range: 0.5648-0.5800 (1.7240-1.7704)