The Australian Dollar AUD) finished the week well recovering off 0.5130 (1.9500) area to close at 0.5155 (1.9400) before extending gains Monday to reach 0.5185 (1.9290) as it gathers momentum into Tuesday. Data out in the UK hasn’t been completely convincing of late with GDP for the month of July coming in lower at 0.6% and Retail Sales also disappointing at 0.5% for July. In contrast the RBA has no plans to cut rates with upside risk to inflation while closely correlated commodity prices continue to extend gains. UK Manufacturing is Thursday. 0.5290 (1.8900) is the next target.
Current Level: 1.9305
Resistance: 1.9750
Support: 1.9100
Last Weeks Range: 1.9318- 1.9523