• GBP/AUD dipped on Tuesday as the Australian dollar strengthened following the RBA's surprise decision to hold interest rates steady.
• Australia’s central bank held its cash rate at 3.85% on Tuesday, surprising markets that had widely expected a cut, as most board members opted to wait for further confirmation that inflation is easing.
• Concluding its two-day policy meeting, the Reserve Bank of Australia expressed caution over the inflation outlook, revealing a rare split vote six members favored holding rates steady, while three opposed the decision.
• Markets had nearly fully priced in a rate cut to 3.60% this week, as core inflation eased to the midpoint of the RBA’s 2–3% target and consumer spending remained softer than anticipated.
• Immediate resistance is located at 2.0970(Daily high), any close above will push the pair towards 2.1087(38.2% fib).
• Strong support is seen at 2.0728(50% fib) and break below could take the pair towards 2.0647(Lower BB).
Recommendation: Good to buy around 2.0770, with stop loss of 2.0700 and target price of 2.0900
