• GBP/AUD dipped but downside was limited on Thursday as investors focused on Britain's fiscal challenges ahead of finance minister Rachel Reeves' annual budget which is due on November 26.
• Reeves is widely anticipated to announce further tax hikes, after requiring employers to contribute an additional £25 billion ($33.38 billion) in social security payments in her first budget last year.
•The 30-year British gilt yield rose about 9 basis points on the day to 5.578%, its highest since September 4 just after hitting a post-1998 peak
• BoE policymaker Megan Greene said Wednesday that inflation risks in Britain are likely to be stronger than the central bank’s projections, warranting a cautious stance on further interest rate cuts.
• Investors were fully pricing in just one 25 basis-point interest rate cut by the Bank of England by the end of 2026, a reflection of the country's persistent inflation pressures.
• Immediate resistance is located at 2.0491 (SMA 20 ), any close above will push the pair towards 2.0562 (50%fib).
• Immediate support is seen at 2.0326 (61.8%fib ), break below could take the pair towards 2.0282 (Lower BB).
Recommendation: Be on sideliness
