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21 Apr 2014
EUR/AUD awaits key event for the week
FXStreet (Guatemala) - EUR/AUD is trading at 1.4811, up 0.15% on the day, having posted a daily high at 1.4823 and low at 1.4787.
EUR/AUD is gearing up towards the main event for the week that will come from Australia’s CPI numbers for Q1.
Inflation Report to Seal the (Hawkish) Deal
Strategists at TD Securities explained that unlike many global central banks that have shifted and tweaked their policy focus in recent years, the RBA has been steadfast about its inflation target of 2-3% over the medium term. “RBA Governor Stevens’ record had been impressive, bringing down underlying inflation from near-5%/yr (due to the first commodity price boom) without creating a recession. Now the challenge is to manage another upturn, and after consecutive quarters of ‘higher than expected’ underlying inflation, we expect another pop to near-3%/yr next week”. They also added, “The average underlying inflation rate under RBA Governor Glenn Stevens is now 3.1%/yr, above the 2-3% target band (his predecessor Ian Macfarlane achieved mid-target 2.6% during his tenure). No wonder the RBA Governor is worried about inflation and has ceased jawboning the currency lower in recent months”.
EUR/AUD Levels
With spot trading at 1.4813, we can see next resistance ahead at 1.4819 (Yesterday's High), 1.4823 (Daily High), 1.4830 (Daily Classic R2), 1.4840 (Daily Classic R3) and 1.4841 (Daily 200 SMA). Support below can be found at 1.4810 (Daily Classic R1), 1.4808 (Weekly High), 1.4805 (Hourly 20 EMA), 1.4800 (Daily Classic PP) and 1.4797 (Daily Open).
EUR/AUD is gearing up towards the main event for the week that will come from Australia’s CPI numbers for Q1.
Inflation Report to Seal the (Hawkish) Deal
Strategists at TD Securities explained that unlike many global central banks that have shifted and tweaked their policy focus in recent years, the RBA has been steadfast about its inflation target of 2-3% over the medium term. “RBA Governor Stevens’ record had been impressive, bringing down underlying inflation from near-5%/yr (due to the first commodity price boom) without creating a recession. Now the challenge is to manage another upturn, and after consecutive quarters of ‘higher than expected’ underlying inflation, we expect another pop to near-3%/yr next week”. They also added, “The average underlying inflation rate under RBA Governor Glenn Stevens is now 3.1%/yr, above the 2-3% target band (his predecessor Ian Macfarlane achieved mid-target 2.6% during his tenure). No wonder the RBA Governor is worried about inflation and has ceased jawboning the currency lower in recent months”.
EUR/AUD Levels
With spot trading at 1.4813, we can see next resistance ahead at 1.4819 (Yesterday's High), 1.4823 (Daily High), 1.4830 (Daily Classic R2), 1.4840 (Daily Classic R3) and 1.4841 (Daily 200 SMA). Support below can be found at 1.4810 (Daily Classic R1), 1.4808 (Weekly High), 1.4805 (Hourly 20 EMA), 1.4800 (Daily Classic PP) and 1.4797 (Daily Open).