• GBP/AUD extends decline on Thursday as the Australian dollar strengthened after Wednesday’s upside surprise in Australian inflation boosted hawkish RBA bets..
• Data from the Australian Bureau of Statistics showed the monthly CPI rose 1.0% in July from June, above the 0.8% forecast, as fuel prices surged 7.5% after declining for three consecutive months.
• The annual inflation rate eased to 3.5% from 3.8%, but remained above expectations of 3.3% as a large increase from last year fell out of the calculation.
• Stronger-than-expected inflation has boosted expectations that the RBA could raise interest rates as early as September..
• Immediate resistance is located at 1.8952(50%fib), any close above will push the pair towards 1.9000(Psychological level).
• Immediate support is seen at 1.8859 (Lower BB) and break below could take the pair towards 1.8783(38.2%fib%).
Recommendation: Good to sell around 1.9000, with stop loss of 1.9100 and target price of 1.8950
