Aussie firmed notably after July’s CPI data came in much stronger than expected. The print reinforces the case for the RBA to maintain its gradual easing pace, removing any immediate scope for a faster round of rate cuts. Aussie’s gains were evident against the Euro and Sterling, with both crosses under renewed downside pressure.
EUR/AUD’s fall from 1.8155 short term top extends lower. Intraday bias remains on the downside for 38.2% retracement of 1.7245 to 1.8155 at 1.7807. That is close to channel support (now at 1.7816), and 55 D EMA (now at 1.7841).
Sustained break of this cluster support zone should confirm that whole rise from 1.7245 has completed. Corrective pattern from 1.8554 should then be in its third leg. In this case, bring deeper fall to 61.8% retracement at 1.7593.
GBP/AUD’s extended fall indicates short term topping at 2.1003 after rejection by 2.1034 resistance. The development suggests that corrective pattern from 2.1643 is still extending.
Deeper decline should be seen to 61.8% retracement of 2.0420 to 2.1003 at 2.0643 in the near term. Firm break there will target 2.0420 support and possible below.
