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AUD/EUR: Falls Below 20-Day EMA, Australia GDP On Tap

AUD

AUD/EUR retreated from the €0.60 handle and fell below the 20-Day EMA (€0.5959) in its weakest day since 2 Aug. Negative regional equity sentiment, RBA remaining on hold and a drop in Australia's terms of trade all weighed.

  • The pair fell ~0.6% on Tuesday and last prints at €0.5945/50.
  • Bear's immediate focus is on a break of yesterday's low (€0.5919), to target cycle lows (€0.5863). This opens the low from May 4 2020 (€0.5815), low from April 8 2020 (€0.5631) and €0.5595 a Fibonacci projection.
  • Bulls look to break the high from 4 Sep at €0.6007, a break through here opens the high from Aug 1 at €0.6115 and the 200-Day EMA comes in at (€0.6191).
  • On tap today we have Q2 GDP from Australia, a rise of 0.4% Q/Q is expected, ticking higher from 0.2% Q/Q in Q1.

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