Australia reported a surprise rebound in consumer confidence for August as second-quarter wage inflation rose slightly above expectations. The Australian Dollar was unable to capitalize on the better-than-expected data as China reported weaker industrial production and retail sales data. With yesterday’s stronger-than-expected UK employment data, the GBPAUD remains well support at current levels, will a breakout follow or will US President Trump’s announcement of a delay in certain tariffs force a breakdown? Today’s fundamental analysis will cover the path to the upside and look at the downside risk.

Forex traders will focus on UK inflation data which will be released this morning in order to gauge inflationary pressures and how this may impact the Bank of England. As other central banks have pushed through interest rate cuts, the British central bank is unlikely to follow through which will support the British Pound. Can the GBPAUD rally after the release of inflation data after Chinese data disappointed? Subscribe to the PaxForex Daily Fundamental Analysis where you will grow your balance trade-by-trade.