The GBP has been softer in the last week against the AUD, trading around 0.5200. This has been due to the weaker GBP, ahead of this week’s Bank of England meeting, to decide monetary policy settings. The Bank of England are expected to leave rates unchanged, but the question will be, will they recognise the recent reversal upwards in inflation? If so, and the BoE is force to hold interest rates higher for longer the GBP will rebound against the AUD Dollar. If the Bank of England see
inflation rises as negligible and temporary then downward pressure may remain.
Current Level: 0.5170
Support: 0.5100
Resistance: 0.5250
Last week’s range: 0.5180 – 0.5205