The GBPAUD pair will offer the best opportunity in the next two days for short-term trading opportunities.
The Pound sterling has been pushing higher over the last two trading weeks and is approaching key resistance.
GBPAUD – Daily Chart
The UK currency could see a test at the 1.7766 level, opening the door to further gains. If the coming economic data favours the Australian dollar, a return to the support levels could happen.
The first data release will be the Westpac Consumer Confidence figure from the Australian economy.
Last month’s reading for the closely-watched indicator was 84.4. Still, according to the Commonwealth Bank of Australia, this month already sees risk. The CBA’s household spending intentions index fell by 0.5% in September from August. That marked the first drop since August. Consumers are starting to feel the pinch from the Reserve Bank of Australia’s aggressive interest rate hikes, according to CBA economist Stephen Halmarick.
The official interest rate has surged to 2.60% from 0.1% at the start of May, with warnings of further interest rate hikes. The HIS decline was led by health and fitness, home buying, household services, and transport, Mr. Halmarick said.
Another reading from ANZ bank and poll guru Roy Morgan saw consumer confidence fall 1.1%.
For the United Kingdom, tomorrow releases employment numbers with a loss of -155k jobs expected. That is a sharp drop from last month’s gain of 40k. However, the unemployment rate is expected to stay still at 3.6%.
Traders will watch real wages closely as vital jobs market indicators have been soured by falling wages due to inflation.
On Wednesday, the British pound will get an update on GDP growth for the three months into the end of August. That will determine whether the British economy is in a recession, with a drop of -0.2% expected from the economy. The week ahead should provide a good indicator of the next direction for the GBPAUD exchange rate.
There was further bad news for the British economy on Monday after borrowing costs rose again. Yields on British 20- and 30-year gilts jumped by almost 30 basis points on Monday and are now close to the levels seen during the mini-Budget rout.