GBP/AUD finds stiff resistance at 1.9250, book full profits
GBP/AUD pair spiked above 0.91 handle after poor Australia CPI data today raised RBA rate cut bets.
Low inflation, on its own, is not a trigger for a rate cut. RBA will likely wait to see a new weaker trend in domestic activity and employment before it would embark on such a strategy.
On weekly charts we see major hurdle at 1.9250 levels which is 23.6% Fib of 2.2372 to 1.8293 fall.
Further upside only on breaks above. Momentum studies are neutral. We recommend booking full profits on the previous call for now.
Low inflation, on its own, is not a trigger for a rate cut. RBA will likely wait to see a new weaker trend in domestic activity and employment before it would embark on such a strategy.
On weekly charts we see major hurdle at 1.9250 levels which is 23.6% Fib of 2.2372 to 1.8293 fall.
Further upside only on breaks above. Momentum studies are neutral. We recommend booking full profits on the previous call for now.
