• GBP/AUD dipped on Wednesday as Australian dollar firmed ahead of key Australian labor data.
• The October employment report, due at 0030 GMT, is expected to show an increase of 20,000 jobs with the unemployment rate steady at 4.4%.
• The Reserve Bank of Australia (RBA) is watching closely for signs of post-September mean reversion in the labor market. A weaker-than-expected reading could dampen confidence and put the case for a December rate cut at risk.
• Globally, risk sentiment improved as the U.S. House of Representatives prepared to vote on a temporary government funding bill that would keep the government running until January 30, easing concerns over a prolonged shutdown.
• Immediate resistance is located at 2.0176(Nov 12th high), any close above will push the pair towards 2.0262(38.2%fib).
• Immediate support is seen at 1.9920(23.6%fib) and break below could take the pair towards 1.9849 (Lower BB).
Recommendation: Good to sell around 2.0120 with stop loss of 2.0200 and target price of 2.0000
