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27 Feb 2014
GBP/AUD spiked marking 1.8688 high
FXStreet (Guatemala) - GBP/AUD has marked a high to challenge key resistance of the daily had and shoulders at 1.8688 and testing the top of of the ascending channel resistance from 1.8000 in January.
The move came on the release of Australia’s private capex disappointing at at -5.2% vs -1.3% expected. This data will be of considerable interest to the RBA and this shocker release has taken the markets attention. Meanwhile, GBP was reacting to slightly better details of the second reading of Q4 GDP earlier, which showed some of the strength in business investment that the BoE needs to see before it will consider raising rates. The BOE's McCafferty was on the wires and indicated the MPC could raise interest rates earlier in the UK if inflation pressures build. However, In the UK Boe’s Dale suggests rates not moving “anytime soon” and when they do rises will be cautious.
The move came on the release of Australia’s private capex disappointing at at -5.2% vs -1.3% expected. This data will be of considerable interest to the RBA and this shocker release has taken the markets attention. Meanwhile, GBP was reacting to slightly better details of the second reading of Q4 GDP earlier, which showed some of the strength in business investment that the BoE needs to see before it will consider raising rates. The BOE's McCafferty was on the wires and indicated the MPC could raise interest rates earlier in the UK if inflation pressures build. However, In the UK Boe’s Dale suggests rates not moving “anytime soon” and when they do rises will be cautious.