• EUR/AUD eased slightly on Monday as investors assessed the possibility of a U.S. government shutdown and awaited RBA rate decision.
• President Donald Trump will meet congressional leaders Monday to discuss funding, with a shutdown and new U.S. tariffs set to take effect Wednesday if no deal is reached.
• The Reserve Bank of Australia is expected to keep the official cash rate (OCR) steady at 3.60% on Tuesday, while signaling that any future rate cuts will depend on incoming economic data.
• Domestic economic growth picked up in Q2, driven by lower borrowing costs and easing inflation, though unemployment data has shown mixed signals.
• The global outlook for growth and inflation remains uncertain, weighed down by ongoing trade tensions and pressure from U.S. President Donald Trump on the Federal Reserve to cut interest rates.
• Immediate resistance is located at 1.7871(50%fib), any close above will push the pair towards 17967(Higher BB)
• Support is seen at 1.7795(SMA 20) and break below could take the pair towards 1.7747(61.8%fib)
Recommendation: Good to buy around 1.7800 with stop loss of 1.7750 and target price of 1.7860
