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EUR/AUD in correction mode now – downside target range 1.4850 – 1.5022

FXstreet.com (Barcelona) - EUR/AUD is correcting lower after posting a conspicuously bearish candle on Wednesday. Traders are reacting to sluggish European data over the last week as well as to talk of China intervening in markets with liquidity injections.

EUR/AUD readying for multiple data releases during the European session

EUR/AUD traders will be trading off of European news only on Friday as there are no Aussie data points due out. The European data flow will include German Consumer Confidence, German PPI and EuroZone Consumer Confidence.

Technical outlook for EUR/AUD

Technicians say EUR/AUD topped out at the 1.5578 level on Wednesday and appears to be in the midst of a downside correction with targets starting at 1.5234 and continuing to 1.5022 and 1.4851. Resistance above 1.5578 comes in at 1.5600.

China rates ease post PBoC SLOs

One of the news making headlines in the Asian continent is the reduction on China's 7-day repo rates, down at 4.98% at the open vs 7.10%, following the short term liquidity injection (SLOs) by the PBoC yesterday.
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AUD/JPY hits weekly highs after PBoC move

The AUD/JPY broke above 92.40 and rose to 92.70 reaching the strongest level since last Friday following moves by the Chinese central bank
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