• GBP/AUD slipped lower on Friday as rising optimism over a possible RBA rate hike in 2026 lent support to the Australian dollar.
• RBA minutes released Tuesday showed policymakers preparing for a potential rate hike should inflation fail to ease, highlighting the importance of the January 28 Q4 CPI data.
• Markets are watching Q4 core inflation closely, with analysts warning that an upside surprise could lead to RBA tightening at the February meeting.
• The RBA holds its first policy meeting of 2026 on February 3, with markets pricing a 28% probability of a 25 bp hike to the 3.6% cash rate.
• Immediate resistance is located at 2.0156(38.2%fib), any close above will push the pair towards 2.0258(Dec23rd high).
• Immediate support is seen at 2.0013(Lower BB) and break below could take the pair towards 1.9977 (23.6%fib)
Recommendation: Good to sell around 2.0100 with stop loss of 2.0150 and target price of 2.050
