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4 Oct 2013
EUR/AUD stuck below 1.45 zone
FXstreet.com (Chicago) - EUR/AUD reached the 1.4550 zone several times throughout the week but was rapidly pushed down on clash of recovering economies that display higher levels of hawkishness.
Slow recoveries
Weaker than expected data in Germany held the pair back as revealed by PMI manufacturing results despite stronger Eurozone retail sales data. After the Italian political crisis smoothed down, its last leg is the expulsion of Berlusconi by the Senate. A not so dovish ECB discourse excited bulls momentarily, pressing the pair higher on several occasions throughout the week. In Australia, the RBA decision to maintain interest rates at 2.5% for at least the end of the year indicated the economy is still on its way to recovery.
EUR/AUD Technical Levels
Technically speaking, the pair is offered at 1.4477 and oscillates between supports aligned at 1.4456 (October 3rd lows), 1.4397 (September 20th highs) ahead of 1.4349 (September 19th highs) and the resistances set at 1.4549 (September 30th highs), 1.46 (September 1st lows) followed by 1.4656 (August 18th highs). Kathy Lien, Managing Director at FX Strategy stated the Aussie found no support despite better than expected service sector activity results in China and Australia regardless of “Australia's PMI index rising to 47.1 from 39.0, a jump that took the index to its highest level in 6 months.”
Slow recoveries
Weaker than expected data in Germany held the pair back as revealed by PMI manufacturing results despite stronger Eurozone retail sales data. After the Italian political crisis smoothed down, its last leg is the expulsion of Berlusconi by the Senate. A not so dovish ECB discourse excited bulls momentarily, pressing the pair higher on several occasions throughout the week. In Australia, the RBA decision to maintain interest rates at 2.5% for at least the end of the year indicated the economy is still on its way to recovery.
EUR/AUD Technical Levels
Technically speaking, the pair is offered at 1.4477 and oscillates between supports aligned at 1.4456 (October 3rd lows), 1.4397 (September 20th highs) ahead of 1.4349 (September 19th highs) and the resistances set at 1.4549 (September 30th highs), 1.46 (September 1st lows) followed by 1.4656 (August 18th highs). Kathy Lien, Managing Director at FX Strategy stated the Aussie found no support despite better than expected service sector activity results in China and Australia regardless of “Australia's PMI index rising to 47.1 from 39.0, a jump that took the index to its highest level in 6 months.”