• GBP/AUD pair weakened on Tuesday as the Australian dollar gained on stronger-than-expected consumer spending data.
• Australia's household spending rose a robust 0.8% in June, comfortably beating forecasts of 0.2%, as stronger discretionary spending lifted annual growth to 6.0%, also above expectations.
• The robust spending data backed the central bank's view that consumer demand remains firm, while moderating inflation and slowing housing activity have increased expectations that policymakers will leave the 4.35% cash rate unchanged at next week's meeting..
• Australia's central bank has raised the cash rate to 4.35% after three increases this year, fully offsetting the policy easing implemented in 2025. It has indicated that further rate hikes may still be needed if higher energy prices continue to add to inflationary pressures.
• Immediate resistance is located at 1.9174(50%fib), any close above will push the pair towards 1.9370(Higher BB).
• Immediate support is seen at 1.9014 (Lower BB) and break below could take the pair towards 1.8927(23.6%fib).
Recommendation: Good to sell around 1.9170, with stop loss of 1.9240 and target price of 1.9120
