• GBP/AUD dipped on Thursday as the AUD strengthened on improved risk sentiment after reports the U.S. cancelled strikes on Iran and talks toward a preliminary deal advanced.
• Iranian sources suggested negotiations with the U.S. have intensified, while President Trump indicated a possible peace deal could emerge as early as this weekend, further easing geopolitical tensions.
• In economic data, U.S. initial jobless claims came in at 219K versus 214 k expected, while May PPI rose 1.1% m/m compared with a 1.1% forecast, adding to mixed signals on the U.S. outlook.
• Attention now turns to the RBA policy meeting on Tuesday, where rates are expected to remain unchanged at 4.35%.
• Immediate resistance is located at 1.9151(38.2%fib), any close above will push the pair towards 1.9201(Higher BB).
• Strong support is seen at 1.8980(50%fib) and break below could take the pair towards 1.8853(SMA 20).
Recommendation: Good to buy around 1.9020, with stop loss of 1.8900, and target price of 1.9150
