GBP/AUD Awaits UK GDP Release to Build on Today’s Momentum
surged nearly 400-pips on Wednesday, breaking past 1.9000 psychological
mark and testing 1.9200 mark before retracing a bit to currently trade
near 1.9110 just ahead of the UK GDP release.
The Australian Dollar (AUD) witnessed sharp depreciation on Wednesday after the official data showed headline inflation falling by 0.2% for the March quarter. The unexpected drop in CPI is now fueling speculations of a rate cut by the Reserve Bank of Australia.
Technical levels to watch
From current levels, move back above 1.9150 level seems to assist the pair to decisively break-through 1.9200 round figure mark and the momentum could further get extended towards Feb. low level support near 1.9250-60 area.
Alternatively, weakness below 1.9100 mark, on weak UK GDP print, seems to find immediate support near 1.9040-30 horizontal zone, which if breached might force the pair to retest sub-1.9000 mark (1.8985-80 support area).