GBP/AUD Slightly Up as Johnson Awaits EU Decision

GBP/AUD has continued its upward movement that started yesterday after touching a strong support level. The pair has gained 0.17% and is trading at 1.8874 as of 05:30 AM UTC.

If the uptrend continues, the price will test a strong resistance level at around 1.8950.

The British pound remains strong amid reduced fears of a potential no-deal Brexit.

PM Johnson Awaiting EU Decision

UK Prime Minister Boris Johnson is waiting for European leaders to decide for or against another Brexit extension and, more importantly, how long it should last. If the EU allows a three-month extension to the current deadline set for next Thursday, Johnson said he would call an election to be held before Christmas.

EU Council President Donald Tusk recently tweeted that he recommended the leaders to support a delay. On the other side, Johnson is not happy about it as he pledged to take the country out of the bloc by October 31. However, he was forced by the parliament to request it.

The UK is now closer than ever to end the Brexit saga and move on independently from the European Union. Last week, Johnson secured a deal with the EU, but it failed to pass through the parliament on Saturday, and the House of Commons denied another “yes or no” vote on Tuesday. This means the PM has to go the hard way by passing the Withdrawal Agreement Bill (WAB) through both chambers, which requires more time.

Most of the European officials agree that the EU would allow another extension that will give the UK the required time to pass the bill.

An EU diplomat involved in the discussions reportedly said:

“The most likely outcome is an extension until January 31, as requested by London, with the possibility of Britain getting out earlier, providing it finishes its legal processes. Basically as soon as Britain is ready itself, it can go.”

Australia’s Services PMI Declines More than Expected

Australian services purchasing managers index (PMI), prepared by Commonwealth Bank of Australia (CBA) and Markit Economics Manufacturing, fell more than expected in October, according to a preliminary reading. Thus, the indicator declined to 50.8 from 52.4, while analysts anticipated a slight decline to 52.2.

Elsewhere, manufacturing PMI was down from 50.3 in September, to 50.1 in October.

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