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6 Jun 2014
GBP/AUD threatens 1.80 handle
FXStreet (Guatemala) - GBP/AUD is trading at 1.8020, up 0.08% on the day, having posted a daily high at 1.8026 and low at 1.8005.
GBP/AUD has been testing the downside further with deep slide from 1.8080 resistance to challenge the 1.80 handle at which point bulls bought cheap sterling and the pair trades back into an advance on the handle to 1.8020 levels. In London, the Bank of England MPC left monetary policy settings unaltered in June, as was universally expected, as noted by RBS strategists. “There was no statement (also as expected) and the Minutes will be published at 09:30 on Wednesday 18 June, where we expect unanimous policy votes. The RBS forecast is for the first 25bp Bank Rate hike in August 2015, with Bank Rate reaching 1.0% by the end of 2015 and 2.0% at the end of 2016”.
AUD supported on China for time being
In relation to the Aussie, looking ahead, analysts at TD Securities expect the AUD to be fairly well supported around current levels. “While the market focus has predominantly been on the weakness in iron ore prices, we expect Chinese volumes for iron ore to remain at historic high levels”…“With iron ore prices falling and Chinese mines unable to compete, importing becomes the more attractive option to meet China’s urbanization objectives. This should continue lending support to the AUD for the time being”.
GBP/AUD Levels
With spot trading at 1.8022, we can see next resistance ahead at 1.8023 (Daily Classic PP), 1.8023 (Hourly 20 EMA), 1.8026 (Daily High), 1.8060 (Weekly Classic PP) and 1.8064 (Hourly 100 SMA). Support below can be found at 1.8009 (Daily Open), 1.8005 (Daily Low), 1.7980 (Yesterday's Low), 1.7968 (Weekly Low) and 1.7965 (Daily Classic S1).
GBP/AUD has been testing the downside further with deep slide from 1.8080 resistance to challenge the 1.80 handle at which point bulls bought cheap sterling and the pair trades back into an advance on the handle to 1.8020 levels. In London, the Bank of England MPC left monetary policy settings unaltered in June, as was universally expected, as noted by RBS strategists. “There was no statement (also as expected) and the Minutes will be published at 09:30 on Wednesday 18 June, where we expect unanimous policy votes. The RBS forecast is for the first 25bp Bank Rate hike in August 2015, with Bank Rate reaching 1.0% by the end of 2015 and 2.0% at the end of 2016”.
AUD supported on China for time being
In relation to the Aussie, looking ahead, analysts at TD Securities expect the AUD to be fairly well supported around current levels. “While the market focus has predominantly been on the weakness in iron ore prices, we expect Chinese volumes for iron ore to remain at historic high levels”…“With iron ore prices falling and Chinese mines unable to compete, importing becomes the more attractive option to meet China’s urbanization objectives. This should continue lending support to the AUD for the time being”.
GBP/AUD Levels
With spot trading at 1.8022, we can see next resistance ahead at 1.8023 (Daily Classic PP), 1.8023 (Hourly 20 EMA), 1.8026 (Daily High), 1.8060 (Weekly Classic PP) and 1.8064 (Hourly 100 SMA). Support below can be found at 1.8009 (Daily Open), 1.8005 (Daily Low), 1.7980 (Yesterday's Low), 1.7968 (Weekly Low) and 1.7965 (Daily Classic S1).