EUR/AUD clocks near one-month high ahead of RBA rate decision

EUR/AUD cross rose to near one-month high of 1.4840 heightened expectations of RBA rate cut today kept Aussie under pressure, while EUR rallied against the greenback.

Trades above 23.6% Fibo

At 1.4820, the pair is trading well above 1.4755 (23.6% of 1.5646-1.4479). Aussie was offered on Monday and remains under pressure in Asian session today as markets see a 76.6% probability of a rate cut by RBA. Most economists surveyed by Bloomberg also expect RBA to cut rates to 1.5% from 1.75%.

Meanwhile, EUR/USD pair revisited 1.1180 area in Asia and now continues to trade around 1.1165 levels. Consequently, the cross rose to near one-month high levels ahead of RBA rate decision.

EUR/AUD Technical Levels

Acceptance above 1.4840 (daily high) would expose 1.4925 (38.2% of 1.5646-1.4479), where a violation could yield a test of supply around 1.50 handle. On the other hand, a breakdown of support at 1.4794 (daily low) would open doors for a drop to 1.4755 (23.6% of 1.5646-1.4479), breach of which would shift risk in favor of a drop to 1.4670 (previous day’s low).