Chart of the day - GBPAUD (05.07.2022)

7:19 AM 5 July 2022

The Reserve Bank of Australia announced a 50 basis point rate hike after a meeting today. This put the main interest at 1.35% - the highest level since mid-2019. This was also the first back-to-back 50 basis point rate hike in RBA's history as the Bank embarked on a record-paced tightening in an attempt to rein in inflation. Interest rate futures are now pricing in around 170 basis points of additional RBA tightening by the end of this year. However, economists say that a streak of recent upbeat data, like for example retail sales, makes it unlikely for the RBA to follow in Fed's footsteps and deliver a 75 basis point move. Instead, the Bank is expected to continue with 50 basis point rate hikes in the coming meetings.

AUD barely experienced any reaction to the RBA decision as a 50 bp rate hike was expected and priced in. The Australian dollar has later lost some ground and is now one of the worst performing G10 currencies. Taking a look at GBPAUD at D1 interval, we can see that the pair made an attempt at breaking below 50-session moving average (green line) earlier today. However, bears failed to push the pair below and a recovery move was launched. Note that this moving average has served as a turning point a few times already (orange circles). Should the recovery move continue, a resistance zone in the 1.78 area will be the first target for buyers. The pair may experience some elevated volatility after 10:30 am BST as BoE is expected to release a financial stability report and remarks from BoE Governor Bailey will follow at 11:00 am BST.

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

Source: xStation5

Share:
Back
Xtb logo

Join over 935 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language