GBPAUD is lower on Thursday at 1.8140 as the RBA announces their latest interest rate decision tomorrow. The central bank is unlikely to make any moves on rates and stimulus but could seek to hold a dovish tone.
Another headwind for Sterling is still with Brexit as talks drag on. European Commission President Ursula Von Der Leyen was still on the fence when speaking to the EU Parliament yesterday, saying:
“There are still three issues that can make the difference between a deal and no deal.”
The same issues are holding up the last part of talks with fishing, the level playing field for businesses and how the agreement is enforced.
The deputy of the Reserve Bank of Austrlia was talking to business economists this week and lauding the use of stimulus to save jobs and lower the Aussie currency. The bank will not move after last month’s cut to record lows but there is the possibility that a stronger Aussie currency could make them uncomfortable if it drags on employment levels.
GBPAUD failed to rally from a test of the 50-day moving average and a move to the 1.8000 level. If the pair can move below this level then the 1.77-7600 prices are possible. Traders could short a bearish close today with a stop above the day’s high. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
