• GBP/AUD traded flat on Monday as markets awaited RBA policy decisions, UK jobs data, and US CPI figures.
• Markets widely anticipate a 25 basis point rate cut to 3.60% at the August meeting, driven by softer-than-expected Q2 inflation and the unemployment rate rising to its highest level in three and a half years.
• Economists expect the UK unemployment rate, due Tuesday, will remain at 4.7% through June, but a CIPD survey reveals hiring intentions have dropped to pandemic-era lows, and wage growth is slowing.
• Tuesday’s CPI is forecast to show inflation rising at an annual pace of 2.8% in July, above the prior month's rate.
• Technical are bearish, daily RSI is negative at 26, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 2.0697 (38.2% fib), any close above will push the pair towards 2.0733 (Higher BB).
• Strong support is seen at 2.0572 (SMA 20) and break below could take the pair towards 2.0424 (Lower BB).
Recommendation: Good to buy on around 2.0590, with stop loss of 2.0500 and target price of 2.0660
