Phrase by the foreign exchange grapevine is that the ECB may be mulling a 0.50% hike this week.
Are euro bulls in for a disappointment, although?
Let’s see how EUR/AUD reacts to the highest of its short-term vary!
Earlier than shifting on, ICYMI, yesterday’s watchlist checked out AUD/USD’s bullish reversal forward of the RBA minutes. You should definitely take a look at if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Recent Market Headlines & Financial Knowledge:
RBA assembly minutes: Inflation elevated additional to multi-decade highs
RBA: Resilience of Australian financial system evident in labor market
Swiss commerce surplus widened from 3.12B CHF to three.80B CHF
U.Ok. claimant depend dropped by 20K vs. projected 41.2K decline
U.Ok. unemployment fee held regular at 3.8% as anticipated
U.Ok. common earnings index slid from 6.8% to six.2% vs. 6.7% forecast
ECB policymakers reportedly discussing a 0.50% hike this week
BOE Governor Bailey’s speech at 3:00 pm GMT
FOMC member Brainard’s speech at 6:35 pm GMT
RBA Governor Lowe’s speech at 11:10 pm GMT
New Zealand GDT dairy public sale developing
Use our new Foreign money Warmth Map to shortly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
What to Watch: EUR/AUD
EUR/AUD 1-hour Foreign exchange Chart
The euro is feelin’ the bullish vibe these days, as rumor has it that the ECB may be open to a 0.50% hike this week.
Can this wishful considering final, although?
EUR/AUD might have popped sharply larger on the information, however it’s additionally price noting that Australia’s fundamentals are wanting hella sturdy.
Actually, the RBA minutes simply acknowledged that the Australian financial system has been resilient, even with worldwide headwinds and robust inflationary pressures.
This may be sufficient to maintain the short-term vary resistance holding, presumably sending EUR/AUD again all the way down to the underside close to the 1.4800 deal with.
Technical indicators are wanting blended, although. The 100 SMA is beneath the 200 SMA to mirror bearish strain, however Stochastic is simply beginning to make its method out of the oversold area. Additionally, the hole between the shifting averages has narrowed sufficient to trace at a attainable bullish crossover.
With that, a break above the close by ceiling at 1.4925 may set off a rally that’s at the very least the identical peak because the vary.
Higher preserve shut tabs on headlines that may affect general threat sentiment, too!
