• GBP/AUD dipped on Wednesday as Australian dollar firmed following hotter than expected Australian CPI data.
• Australian consumer prices rose more than expected in January, with core inflation reaching a more than one-year high, increasing the likelihood of another interest rate hike.
• Data from the Australian Bureau of Statistics showed the monthly CPI rose 0.4% in January from December, driven by higher housing, healthcare, and clothing costs.
• The trimmed mean core inflation rose 0.3% in the month, lifting the annual rate to a 16-month high of 3.4% from 3.3% in December, remaining above the RBA’s 2%–3% target range for a seventh consecutive month.
• Immediate resistance is located at 1.9132(Daily high), any close above will push the pair towards 1.9310(SMA 20).
• Strong support is seen at 1.9004 (23.6%fib) and break below could take the pair towards 1.8902 (Lower BB).
Recommendation: Good to sell on around 1.9050 with stop loss of 1.9100 and target price of 1.8930
