AUD to GBP extend losses for the sixth consecutive trading session, and now bears are in control as the pair breached below the 100-day moving average. Hopes for a deal between UK and EU support the pair as the negotiations between the two sides will restart tomorrow in Brussels. This would be the final critical stage of the talks ahead of the EU summit in October. Negotiators need to find common ground on the EU fishing rights and the level playing field issue.
Negative Interest Rates In UK Back on the Table
The discussion for negative interest rates in the UK continues. Bank of England policy member Silvana Tenreyro said that the study on negative interest rates showed encouraging evidence on the impact in the economy.
On the coronavirus front, in Australia, the new cases in Victoria state have dropped to the lowest level in two months. On the other hand, a rise in new infections in the UK started the discussion for new restrictions measures.
The Australian government, in its latest commodity forecasts, expects that Australia would be the largest gold producer and forecasts that iron ore price would be around $100 per tonne in the next months. Meanwhile, Westpac analysts revised their projections for the interest rates cuts and now expect the RBS to cut rates to 0.10% in the November meeting.
AUD to GBP Daily Technical Analysis
AUD to GBP slides today below the 100-day moving average as the pair gives up 0.52% at 0.5485. In Asian trading session, the Aussie started higher but met fierce selling pressure at the 50-day moving average. Now the technical outlook for AUDGBP is bearish for the short term.
Initial support for AUDGBP stands at 0.5468 the low from September 4. A break below 0.5468 would open the way for 0.5428 the low from August 21. Next support zone would be met at 0.5389 the low from June 1.
On the contrary, resistance now is the 100-day moving average at 0.5504. A break above might challenge the next hurdle at 0.5532 – the 50-day MA. Next target for bulls is 0.5631 the top from September 23.
AUDGBP Daily Chart
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