Closed in NY at $1.6133 after correcting back from extended recovery highs of $1.6175 to late session lows of $1.6122. Rate opened Asia pivoting the $1.6130 level, dipped to $1.6125 before recovering to an initial high of $1.6140. Announcement by the RBA to cut rates 25bp dropped rate back to $1.6130 where strong demand emerged to pressure the rate higher, trading to $1.6159 into the European open. Euro-sterling opened Asia around stg0.7988 before slowly clawing its way higher as traders noted taking up positions as it targeted stops above stg0.8005 (Monday highs). However, recovery faltered above stg0.7997 before dropping back to retest the opening lows during the volatile reaction to the RBA decision. Rate trades around stg0.7988 into Europe. Domestic focus will be on Nationwide house data at 0600GMT ahead of construction PMI at 0830GMT, with expectations seen for an improvement from last month’s 49.0 to a reading toward 50.0. Cable resistance seen at $1.6162 (76.4% $1.6175-22) a break to expose Monday’s high. Support seen back at $1.6125/20.
EasyForexNews Research Team