The Bank of England’s (BoE) hawkish tone saw the Pound (GBP) extend Friday’s direction Monday to 0.5235 (1.9100) against the Australian Dollar (AUD) before dropping back to 0.5255 (1.9030) It can be said the Bank of England hadn’t considered cutting rates last week with persistence inflation a worry. The vote a 6-3 hold split with the central bank upgrading their inflation forecast. This week’s focus is on today’s RBA cash rate announcement with predictions the RBA will hike to 4.35% from 4.10% ending 4 meetings of holds. This will be the new governor Michele Bullock’s first hike since taking over recently. In theory we should see Aussie strength today, currently 0.5255 (1.9030) pushing higher in the last few hours.
Current Level: 1.9025
Resistance: 1.9190
Support: 1.8940
Last Weeks Range: 1.8896 – 1.9203