Poor AUD data overnight with building approvals dropping 8.4% for the month of Dec vs expectations of +2% took AUD down overnight leading to a 40pip bounce in GBPAUD
. The pair is in process of forming head and shoulders
with the spike on poor data failing to breach the neck line at 1.8100 area. This is now the third day in a row to fail to break above 1.81 and hold.
Looking for retest of 1.79 area into RBA meeting (AUD central bank
) tomorrow and over the coming week