In case you missed it, the Reserve Financial institution of Australia (RBA) simply raised its rates of interest for a ninth consecutive assembly, this time by 25 bps to three.35% as markets had anticipated.

Australia’s rates of interest – now 325 bps increased because the begin of RBA’s fee hike program – are at their highest since September 2012.

Extra importantly, RBA members additionally famous that they count on that “additional will increase in rates of interest will probably be wanted over the months forward.” Yipes!

In the meantime, the Financial institution of England’s (BOE) 50bps fee hike final week got here with dovish tones together with dropping a pledge to “forcefully” increase charges if wanted and noting that inflation has most likely peaked.

It additionally doesn’t assist that BOE’s chief economist Huw Capsule simply cautioned towards “doing an excessive amount of” given the lagging affect of fee hikes.

GBP/AUD: 4-hour

GBP/AUD 4-hour Foreign exchange Chart by TradingView

The diverging central financial institution biases made it simple for GBP/AUD to increase its downtrend.

The pair climbed from its 2023 lows and hit 1.7540, however simply discovered resistance from the 100 SMA and a mid-channel zone.

Let’s see if RBA’s hawkish tone interprets to intraweek uptrends for AUD.

GBP/AUD has no less than 100 pips to go earlier than reaching final week’s lows. Momentum merchants can make the most of the present promoting strain and Stochastic simply leaving the overbought territory and goal the 1.7225 low.

Not liking GBP/AUD’s promoting ranges?

You can too watch for the opportunity of a spike again to Monday’s highs and even the 1.7600 inflection level after BOE MPC members like David Ramsden and Jon Cunliffe share their two cents within the subsequent buying and selling periods.

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