FxWirePro: GBP/AUD falls as weak UK jobs data spurs rate cut bet

• GBP/AUD dipped lower on Tuesday after lackluster employment market data added to bets of more interest rate cuts in the year, while investor attention remained on U.S.-China trade discussions.

• Data showed that pay growth in Britain slowed dramatically, while unemployment rose to its highest level in nearly four years during the three months to April, strengthening the case for the Bank of England to continue cutting interest rates.

• Wage growth excluding bonuses dropped to 5.2%, its worst since the three months to September and down more than predicted from 5.5% in January to March this year.

• The jobless rate jumped to 4.6% from 4.5%, its highest since the three months to May 2021, the Office for National Statistics stated.

• Immediate resistance is located at 2.0815(Daily high), any close above will push the pair towards 2.0963(38.2% fib).

• Strong support is seen at 2.0672(23.6% fib) and break below could take the pair towards 2.0624(Lower BB).

Recommendation: Good to sell on dips around 2.0720, with stop loss of 2.0800 and target price of 2.0620