After reading the EUR macro-data and the AUD macro-data, including the statements and minutes of ECB and RBA, I've arrived at the following conclusions:
EUR snippet:
"Economic activity in the euro area had remained weak in the first two months of 2024. Consumers continued to hold back on spending, housing investment had remained subdued and companies had exported less, reflecting a slowdown in external demand and some losses in competitiveness"
Conclusion, weak.
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AUD snippet:
"Monetary policy is working to slow growth in demand. High inflation, higher interest rates, and tax payments have led people to cut back on spending. Labor market conditions are easing but are still tight relative to full employment."
In conclusion, AUD is very strong, plus Iran just announced that they are getting ready with the missiles, this could put upward pressure on gold due to the currency's uncertainty since AUD is the second biggest producer of Gold in the world, AUD and Gold are hand in hand, the potential upward pressure on Gold will support AUD. High inflation will also make them include the following statement in the press release: "The Board’s decision today balances the objectives of bringing inflation down while also preserving the gains in employment. The Board’s future decisions will depend upon the data and evolving risks, and a further increase in interest rates cannot be ruled out." Rate hikes will give a better return to investors on their bonds, further increasing AUD's value in the medium term. (Medium-term because the info is coming from the central bank)
EUR snippet:
"Economic activity in the euro area had remained weak in the first two months of 2024. Consumers continued to hold back on spending, housing investment had remained subdued and companies had exported less, reflecting a slowdown in external demand and some losses in competitiveness"
Conclusion, weak.
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AUD snippet:
"Monetary policy is working to slow growth in demand. High inflation, higher interest rates, and tax payments have led people to cut back on spending. Labor market conditions are easing but are still tight relative to full employment."
In conclusion, AUD is very strong, plus Iran just announced that they are getting ready with the missiles, this could put upward pressure on gold due to the currency's uncertainty since AUD is the second biggest producer of Gold in the world, AUD and Gold are hand in hand, the potential upward pressure on Gold will support AUD. High inflation will also make them include the following statement in the press release: "The Board’s decision today balances the objectives of bringing inflation down while also preserving the gains in employment. The Board’s future decisions will depend upon the data and evolving risks, and a further increase in interest rates cannot be ruled out." Rate hikes will give a better return to investors on their bonds, further increasing AUD's value in the medium term. (Medium-term because the info is coming from the central bank)