ANALYSIS
NQ100 Finds Support from PPIApr 14
GBPAUD at 5-Year Low
After the Reserve Bank of Australia (RBA) increased the policy interest rate to 1.85 percent with the fourth consecutive interest rate hike in August, we see that the Australian dollar took on a resilient appearance among developed country currencies. On the other hand, the ever-increasing recession risks for the British economy also put the pound-denominated assets under pressure. As a matter of fact, the PMI, the indicator of manufacturing activities published by IHS Markit and S&P Global, dropped to 46 points in August, pointing to a sharp slowdown. Under this view, if the pair, which has weak pricing, can break the 1.6885 support and end the descending channel movement, it can deepen its losses to the 1.6810 level, which is indicated by the Fibonacci 100.0 percent expansion line. Above, the 1.7020 – 1.7100 range can act as a strong resistance zone.
