• GBP/AUD edged lower on Monday as higher commodity price and rising expectations of higher interest rates from the RBA supported Australian dollar..
• Oil prices held steady on Monday as easing unrest in Iran lowered the risk of a U.S. attack that could disrupt supplies, while investors shifted focus to tensions surrounding Greenland..
• On the data front, Australia’s Melbourne Institute Monthly Inflation Gauge rose 1% m/m in December 2025, the fastest pace since December 2023, accelerating sharply from 0.3% in the prior two months.
•Attention now turns to Australian December labour market data due Thursday, where a Reuters poll forecasts 30,000 jobs added and the unemployment rate holding at 4.4%, a key test for RBA policy expectations.
• Immediate resistance is located at 2.0082(SMA 20), any close above will push the pair towards 2.0169(38.2%fib).
• Immediate support is seen at 1.9964(23.6%fib) and break below could take the pair towards 1.9917 (Lower BB).
Recommendation: Good to sell around 2.0000 with stop loss of 2.0160 and target price of 1.9920
