• GBP/AUD dipped on Tuesday but downside was limited as focus now turned to Wednesday’s UK CPI report.
• Headline CPI is forecast to ease to 3.6% YoY from 3.8%, while core inflation is expected to dip to 3.4% from 3.5%.
• The figures could strengthen expectations for BoE policy easing in December or January, given the weakness seen in last week’s GDP and jobs data..
• The Autumn Budget, set for November 26 under Chancellor Rachel Reeves, adds uncertainty to the fiscal outlook, with potential adjustments of £30–£40 billion aimed at bridging the deficit.
• Immediate resistance is located at 2.0337(50% fib), any close above will push the pair towards 2.0480 (Higher BB).
• Immediate support is seen at 2.0176 (38.2%fib) and break below could take the pair towards 1.9961 (23.6%fib).
• Recommendation: Be on side lines
