FX.co ★ The growth of the euro is limited

The Australian dollar was lower by 1.50%.

Despite this, the RBA fears that the growth of the Australian dollar will restrain the price pressure, even if rates are high, it will continue to worsen the outlook for employment and production.

Optimism was noted by the regulator while the cooling of the housing market recently became quite a serious problem amid low interest rates. This could lead to inflation of the mortgage bubble.

As shown in the technical picture of AUDUSD, there is still a real potential for further growth in the area of large annual resistance levels. A break at 0.8060 will open up good prospects for the renewed 0.8120 and 0.8160 levels. In case of the formation of a downward correction, large support levels are seen in the areas of 0.7935 and 0.7865.

Today is the release of the indicator activity for the private production sector of China in July this year, which showed another increase. According to Caixin Media Co. and the Markit, the final index of supply managers for China's manufacturing sector in July was 51.1 points against 50.4 points in June. Keep in mind that the values of the indicator above 50 indicate an increase in activity.

Positive indicators on the growth of China's activity will support the Australian and New Zealand dollar in the short term.

The weakness of the US dollar persists. Many traders are beginning to carefully assess the prospects for supporting economic growth by the US administration. The planned increase in US interest rates this year has no significant effect on the market.

The closing of the EURUSD pair at new monthly highs speaks for itself. The growth continues for 5 months in a row. However, based on a medium-term technical point of view, the pair has crept up to significant levels of resistance, getting beyond that will be so easy. The critical mark is the area of 1.1900, which focuses on a large number of orders for the euro sales, and this level will be critically associated with profit-taking on long positions in the trading instrument.

Medium-term traders who are betting on the further growth of the euro is advised not to rush the current situation, but rather wait for a deeper downward correction towards the 1.1500 support area.