• The EUR/AUD dipped on Monday as rise in risk appetite buoyed risk-sensitive Australian dollar.
• Risk appetite strengthened as hopes grew for a potential China-U.S. trade deal, with investors optimistic that progress in negotiations could ease global trade tensions
• Rallies in copper prices and equities also helped boosting demand for the risk-sensitive Australian dollar.
• Traders are now focusing on Australia’s Q3 CPI data due Wednesday for clues on inflation trends, ahead of the Reserve Bank of Australia’s policy decision on November 4.
• Reserve Bank of Australia Governor Michele Bullock said on Monday a rise in core inflation of 0.9% in the third quarter would be a "material miss" to forecasts that would have to be weighed by the board when judging whether to cut interest rates next week.
• Immediate resistance is located at 1.7814(SMA 20), any close above will push the pair towards 1.7857(50%fib).
• Immediate support is seen at 1.7749(38.2%fib) and break below could take the pair towards 1.7610(23.6%fib).
Recommendation: Good to sell around 1.7820, with stop loss of 1.7900 and target price of 1.7770
