• The EUR/AUD slipped lower on Thursday as traders pared back bets on Reserve Bank of Australia rate cuts.
• Data from the Australian Bureau of Statistics on Thursday showed the monthly household spending indicator surged 1.3% in October to A$78.4 billion ($51.77 billion), boosted by year-end sales events, after a 0.3% increase in the previous month.
•The surprise strength in the spending data pulled forward expectations for rate hikes by the Reserve Bank of Australia, with about a 50% chance now priced in for a move in May next year.
• The RBA has lowered rates three times this year to 3.6% and is considered certain to pause next week, though it may turn more hawkish on the policy outlook after a spike in third-quarter inflation.
• Immediate resistance is located at 1.7691(Daily high), any close above will push the pair towards 1.7727 (SMA 20).
• Support is seen at 1.7600(23.6%fib) and break below could take the pair towards 1.7570(Lower BB).
Recommendation: Good to sell around 1.7640 with stop loss of 1.7700 and target price of 1.7550
