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• EUR/AUD little changed on Monday as investors were cautious ahead of key economic data releases this week, seeking clues about the future direction of monetary policy.
• Investors are waiting for key economic data this week to gain insights into the policy direction of the European Central Bank, which is scheduled to meet on September 12.
• The key event this week is the EU inflation flash estimate on Friday. Also due are consumer price data from France, Italy, and Spain, and Eurozone industrial and economic sentiment reports.
• Immediate resistance is located at 1.6584(38.2%fib), any close above will push the pair towards 1.6641(July 25th high).
• Strong support is seen at 1.6443(50%fib) and break below could take the pair towards 1.6225(61.8%fib).
Recommendation: Be on sidelines
