4 Aug 2015
GBP/AUD drops after RBA statement, Eyes UK data
FXStreet (Mumbai) - The GBP/AUD was heavily offered in the Asian session after the RBA statement showed a major shift in the bank’s view on the AUD.
Focus shifts to UK data
The cross fell to intraday low of 2.1110 as the new language on the exchange rate adopted by the RBA led to a sharp unwinding of AUD shorts. The bank now believes the AUD is moving in line with the weakness in commodity prices, which is a major change from its earlier view that the AUD depreciation is “necessary” and likely.
The investors now await the UK data, which could show construction activity expanded at a slightly faster rate in July. The PMI is seen rising to 58.5 in July from 58.1 in June.
GBP/AUD Technical Levels
The cross now trades around 2.1110, down 1.33%. The immediate support is seen at 2.11, followed by a major support at 2.10 handle. On the other hand, resistance is seen at 2.1271 (July 20 high) and 2.1448 (daily high).
Focus shifts to UK data
The cross fell to intraday low of 2.1110 as the new language on the exchange rate adopted by the RBA led to a sharp unwinding of AUD shorts. The bank now believes the AUD is moving in line with the weakness in commodity prices, which is a major change from its earlier view that the AUD depreciation is “necessary” and likely.
The investors now await the UK data, which could show construction activity expanded at a slightly faster rate in July. The PMI is seen rising to 58.5 in July from 58.1 in June.
GBP/AUD Technical Levels
The cross now trades around 2.1110, down 1.33%. The immediate support is seen at 2.11, followed by a major support at 2.10 handle. On the other hand, resistance is seen at 2.1271 (July 20 high) and 2.1448 (daily high).