• EUR/AUD dipped on Monday as higher commodity price, hawkish RBA rate hike expectation, upbeat China data supported Australian dollar.
• Gold and silver prices jumped to new record peaks, while oil dipped on concerns about what a possible trade war between the U.S. and Europe could mean for global growth and demand.
• China’s economy grew 5.0% last year, meeting the government’s target by capturing a record share of global goods demand to offset weak domestic consumption, a strategy that helped cushion U.S. tariff impacts but is becoming harder to sustain.
• Attention now turns to Australian December labour market data due Thursday, where a Reuters poll forecasts 30,000 jobs added and the unemployment rate holding at 4.4%, a key test for RBA policy expectations.
• Strong resistance is located at 1.7441(38.2% fib), any close above will push the pair towards 1.74640 (SMA 20)
• Immediate support is seen at 1.7305 (23.6% fib) and break below could take the pair towards 1.7225 (Lower BB).
Recommendation: Good to sell around 1.7340, with stop loss of 1.7400 and target price of 1.7250
