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GBP/AUD dropped sharply after RBA decision

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 3, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The demand for the Aussie spiked in Asia after the Reserve Bank of Australia (RBA) held rates unchanged, leading to a sharp drop in the GBP/AUD cross.

    Trades below 23.6% fib level

    The cross now trades few pips below 2.1421 (23.6% of the rally seen in 2015). The RBA, while keeping rate unchanged, maintained that low inflation will provide room for rate cut in the future. However, markets cheered the status quo by sending the AUD higher.

    Meanwhile, the cable remained flat after failing to take out 100-DMA in the previous session. Consequently, the cross fell sharply. Next on tap is the UK construction PMI report.

    GBP/AUD Technical Levels

    At 2.1411, the immediate resistance is seen at 2.1421 (23.6% of 2015 rally), above which the pair could target 2.1499 (50-DMA). On the other side, a failure to rise back above 2.1421 could push the spot lower to 2.1242 (100-DMA).
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