GBPAUD was trading higher on Tuesday after the Reserve Bank of Australia signalled further economic stimulus. The pair was trading near 1.7690 but was unchanged after giving up some of the earlier gains.
Westpac bank predicted ahead of the minutes that further stimulus was likely and the minutes have boosted their view:
“Yesterday we forecast that the RBA Board would extend the current $100 billion QE program with a second $100 billion program (by May 2021). The December Minutes give clear support for this View.”
Unemployment numbers for the U.K. were mixed with a drop of -144k after analysts had forecast a bigger -250k loss. The improvement was undermined by the fact that redundancies were at 370k for the August to October period, which was higher than any quarter during the last recession.
GBPAUD Technical Outlook
The GBPAUD has recovered from last week’s tumble to attempt a double bottom at the 1.7500 level. A close below 1.7700 could signal further downside ahead to retest the lows. The trend would favour the downside but a Brexit deal is a risk to shorts. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
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GBPAUD Daily Chart
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