• EUR/AUD dipped on Wednesday as gains in the yuan and higher commodity prices boosted the Aussie, even as local growth data disappointed.
• Australia’s economy expanded by 0.4% in the latest quarter, missing estimates of 0.7% and marking a slowdown from the prior quarter’s revised 0.7% growth.
•A heavy drag from inventories, which cut 0.5 percentage points from GDP, was the main brake on growth, despite domestic demand contributing a solid 1.1 points.
•Attention now turns to next week’s policy meeting, where rates are widely expected to remain at 3.6% following three cuts earlier this year.
•Oil settled up on Wednesday as hopes of sanction relief faded following unsuccessful U.S.-Russia discussions on Ukraine, but oversupply fears prevented a stronger rally.
• Immediate resistance is located at 1.7708(38.2%fib), any close above will push the pair towards 1.7775 (SMA 20).
• Support is seen at 1.7610(Lower BB) and break below could take the pair towards 1.7578(23.6%fib).
Recommendation: Good to sell around 1.7700 with stop loss of 1.7780 and target price of 1.7700
