• EUR/AUD hits five-month high on Friday as global growth concerns, floundering Chinese economy, weak commodities continued to put pressure on the Australian dollar.
• Australian dollar is also facing pressure against euro after second-quarter inflation figures reduced the chances of the RBA opting for another rate hike in their policy meeting next week.
• Investors are pricing in a 90% probability that the current 4.35% cash rate could be cut in December.
•At GMT 17:19 the pair was up 0.84% at $1.6734, highest level since March 4th 2024 .
• Immediate resistance is located at 1.6793(23.6% fib), any close above will push the pair towards 1.6840(Nov 14th high).
• Strong support is seen at 1.6651(38.2% fib) and break below could take the pair towards 1.6535(50% fib).
Recommendation: Good to buy around 1.6720, with stop loss of 1.6630 and target price of 1.6800
