AUD to GBP trades higher today after an unexpected rise in the UK CPI. The United Kingdom Consumer Price Index reported at 1% above the estimates of 0.6%. UK inflation jumped on higher prices in shoes and clothes. Personal protective equipment and higher petrol prices also contributed to the increase in inflation. The Core Consumer Price Index – CPI excluding food, energy, tobacco and alcohol – came in at 1.8%, topping the expectations of 1.3%. The Retail Price Index registered in at 0.5% topping the expectations of 0.1% in July.
After the news, British pound spiked to the highest level in eight months against the greenback, while is unchanged against EUR. British pound might experience some volatility in the upcoming days as the Brexit negotiations re-started yesterday with the discussions focus on the access of the UK financial sector to the common market after the transition period which ends on the end of the year.
In Australia, the coronavirus battered state of Victoria reported 215 new coronavirus cases, while in the economic front the Westpac Leading Index dropped to 0.1% in July from 0.44% in June.
AUD to GBP Daily Analysis
AUD to GBP is 0.34% higher at 0.5487, as the pair continues to consolidate around the 0.55 mark. The pair lost the positive momentum in early July after it broke below the ascending trend channel that formed in early April. The pullback breached below the 50-day moving average, which now turned into resistance.
Bulls will regain momentum if the pair returns above the 50-day moving average. Next resistance stands at 0.5550 the high from July 28.
On the other hand, support for the AUDGBP would be met at 0.5464 the daily low. More buying interest might emerge at 0.5431 the low from August 3. More sellers would join the action if the pair break below the 100-day moving average at 0.5382.