Aussie Under Pressure: Can the EUR maintain its Bull-Trend?
The Australian dollar has been pressured at the start of the Asian market session by lower-than-expected retail sales, leading to upward momentum in other currency pairs, such as the euro. This morning, we face a slew of European economic data that could influence all of its crosses.
Of particular note are figures related to employment, GDP growth, production costs, inflation and domestic consumption in several European countries. In France, modest growth and better-than-expected inflation are observed, although a significant increase in production costs has been noted. On the other hand, Austria has reported negative production costs and GDP growth along the same lines. In Germany, retail sales have turned out positive but below monthly estimates, while negative consumer price data are expected. Italy, Slovenia, Greece, Latvia, Luxembourg and Portugal will also share their retail sales, production costs, inflation and GDP data respectively.
The market will be mainly attentive to data from Germany, considered the key player in terms of industrials and exports for the euro zone. In the American session, data on Australian consumption, building permits and production costs are expected from ANZ Roy Morgan and Judo Bank respectively. These data will be fundamental to assess the current trend of the Australian dollar and its possible containment.
From a technical analysis point of view, we observed a range movement between $1.66753 and $1.6304 since January, with a mid-zone coinciding with the checkpoint (POC) at $1.65244. Following the directional bounce caused by the Australian data at the European open, it is possible to clearly visualize the picture of an Australian dollar that has shown continued depreciation since Monday. We are likely to see a continuation move towards $1.68408, although the lack of volume indicated by the RSI could lead to moves without the strength of the bulls to further depreciate the 'Aussie'. Therefore, a temporary sideways move into a new range between $1.66753 and $1.66170 is possible, which would act as a bullish support in favor of a stronger euro against this currency.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Of particular note are figures related to employment, GDP growth, production costs, inflation and domestic consumption in several European countries. In France, modest growth and better-than-expected inflation are observed, although a significant increase in production costs has been noted. On the other hand, Austria has reported negative production costs and GDP growth along the same lines. In Germany, retail sales have turned out positive but below monthly estimates, while negative consumer price data are expected. Italy, Slovenia, Greece, Latvia, Luxembourg and Portugal will also share their retail sales, production costs, inflation and GDP data respectively.
The market will be mainly attentive to data from Germany, considered the key player in terms of industrials and exports for the euro zone. In the American session, data on Australian consumption, building permits and production costs are expected from ANZ Roy Morgan and Judo Bank respectively. These data will be fundamental to assess the current trend of the Australian dollar and its possible containment.
From a technical analysis point of view, we observed a range movement between $1.66753 and $1.6304 since January, with a mid-zone coinciding with the checkpoint (POC) at $1.65244. Following the directional bounce caused by the Australian data at the European open, it is possible to clearly visualize the picture of an Australian dollar that has shown continued depreciation since Monday. We are likely to see a continuation move towards $1.68408, although the lack of volume indicated by the RSI could lead to moves without the strength of the bulls to further depreciate the 'Aussie'. Therefore, a temporary sideways move into a new range between $1.66753 and $1.66170 is possible, which would act as a bullish support in favor of a stronger euro against this currency.
Ion Jauregui - AT Analyst
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.