• The EUR/AUD dipped on Monday as investors awaited the Reserve Bank of Australia’s rate decision.
• Inflation dropped to 2.1% last quarter, its lowest in nearly four years and near the RBA’s 2%-3% target range’s lower limit. This gives the RBA room to resume rate cuts after last month’s unexpected pause.
• The RBA is widely expected to cut rates by 25 basis points to 3.6% on Tuesday, following a pause last month as it awaited CPI data.
• Attention also turns to Thursday’s jobs report, with forecasts predicting a 25,000 increase in employment for July and the unemployment rate remaining steady at 4.3%.
• Immediate resistance is located at 1.7936(Aug 7th high ), any close above will push the pair towards 1.8000(Higher BB).
• Strong support is seen at 1.7726(50% fib) and break below could take the pair towards 1.7702(Lower BB).
Recommendation: Good to buy around 1.7720 with stop loss of 1.7650 and target price of 1.7800
