Archived IMT (2009.05.05)

GBPUSD breaks 1.50, making $1.5330 a possible target in the event of improved sentiment into European trade. The RBA decision coming up at 4.30 am GMT is expected to leave rates unchanged at 3.00%, which may trigger a brief retreat in Aussie before the pair attempts to recover ground as the decision may suggest the worst is over for the Australian economy. 0.7515 stands as the 38% retracement of the move from the 0.9845 high to the 0.6070 low. Although Japanese markets will be shut, Asian indices could feed into the next phase of risk appetite. UK April construction CIPS and US April ISM are expected to show further improvement, which is another source of buying in FX risk appetite.