GBPAUD Hovers Above Support Levels Ahead of Data

GBPAUD – Daily Chart 

The price of GBPAUD has found some initial resistance at the 2.06 level and is set to test the previous high at 2.30 if data is not supportive to the British pound. That could open up a move back into the previous range. 

Consumer price data is set to be released at 8:30am on Wednesday for the Australian economy with analysts expecting a 2.5% growth figure. The cost-of-living is a hot topic in the upcoming Australian election as food and energy prices remain elevated in the country, alongside higher interest rates. 

Further data for the GBP v AUD pair is released at 3pm HKT with consumer prices for the UK. The current annual pace is 2.9% in the country, which is still above the central bank’s 2% target.  

In the UK, the cost-of-living crisis is being driven by the new government taxation. Prime Minister Keir Starmer said in 2023 that his party would freeze council tax, but bills are now 25% higher than in 2021-22. 

A rival party spokesman said: “This is Starmer’s day of shame. It is clear that taxes are only going one way on his watch because of decisions he’s made”. 

In Australia, an upcoming Federal budget is expected to provide relief for households. The budget is expected to push a “buy Australian” plan to support local businesses from the economic disruptions of tariffs. Australian beef and pharmaceuticals are expected to be targeted in the next round of US tariffs expected next week. The budget will also contain a further $10.6 billion for defense spending over four years.  

Both Australia and the UK are ramping up defense spending but expecting the struggling consumer to foot the bill and the economies are struggling for growth.