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FxWirePro: GBP/AUD dips ahead of key UK CPI report

• GBP/AUD dipped on  Tuesday but downside was limited as   focus now turned to Wednesday’s UK CPI report.

• Headline CPI is forecast to ease to 3.6% YoY from 3.8%, while core inflation is expected to dip to 3.4% from 3.5%.

• The figures could strengthen expectations for BoE policy easing in December or January, given the weakness seen in last week’s GDP and jobs data..

• The Autumn Budget, set for November 26 under Chancellor Rachel Reeves, adds uncertainty to the fiscal outlook, with potential adjustments of £30–£40 billion aimed at bridging the deficit.

• Immediate resistance is located at 2.0337(50% fib), any close above will push the pair towards 2.0480 (Higher BB).

• Immediate support is seen at 2.0176 (38.2%fib) and break below could take the pair towards 1.9961  (23.6%fib).

•    Recommendation: Be on side lines
 

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