• EUR/AUD slipped lower on Thursday as Australian dollar strengthened following a robust rise in private capital spending in the third quarter.
• Australian private capital expenditure surged 6.4% quarter-on-quarter in Q3, rebounding from a revised 0.4% increase in the previous quarter and comfortably beating the 0.5% market forecast.
• The Australian dollar’s momentum has also been supported by Wednesday’s higher-than-expected inflation data, which markets now view as marking the end of the Reserve Bank of Australia’s easing cycle.
• Meanwhile, European Central Bank policymakers showed little urgency to cut rates at their October 29-30 meeting, citing persistent uncertainty, with some members suggesting that further easing might not be necessary, according to the minutes released on Thursday..
• Immediate resistance is located at 1.7773(SMA 20), any close above will push the pair towards 1.7825 (50%fib).
• Support is seen at 1.7679(61.8%) and break below could take the pair towards 1.7626(Lower BB).
Recommendation: Good to sell around 1.7780, with stop loss of 1.7900 and target price of 1.7700
