• EUR/AUD weakened on Wednesday as the Australian dollar benefited from Australian gross domestic product figures data.
• Australia’s economy expanded 0.4% quarter-on-quarter in the second quarter of 2026, accelerating from 0.3% growth in the previous quarter, according to Australian Bureau of Statistics data released on Wednesday.
• The data complicates the Reserve Bank of Australia’s (RBA) policy path. With inflation still above the 2-3% target band, the central bank has kept the cash rate at 4.35% since November 2023.
• The stronger growth points to continued economic resilience despite high interest rates and challenging global conditions.
• The figures add uncertainty to the RBA’s policy outlook, with inflation still exceeding its 2%-3% target range and interest rates remaining at 4.35% since November 2023.
• Immediate resistance is located at 1.6250(38.2%fib), any close above will push the pair towards 1.6434(50%fib).
• Immediate support is seen at 1.6118(23.6%fib) and break below could take the pair towards 1.6119(Lower BB)
Recommendation: Good to sell around 1.6200, with stop loss of 1.6280 and target price of 1.6120
