23 Oct 2013
EUR/AUD soars as the “Aussie” pares all its post-CPI gains
FXstreet.com (Athens) – The EUR/AUD led on the downwards level after the solid Australian data, but soon rebounded to its initial levels and climbing higher and higher.
EUR/AUD higher as Chinese bank “woes” hurt the “Aussie”
The EUR/AUD was driven abruptly downwards after the solid Australian CPI data released, indicating that there is no need for immediate RBA tightening action. Australian CPI rose 1.2% (much more the expected 0.8% in the third quarter), mainly due to the rise in fuel and travel costs. The inflation pressures were “priced in” by markets as “Aussie” positive, due to the fact that obviously the inflation pressures pushed out a potential RBA rate cut, dragging down the cross. However later on, things changed much as news wires mentioned that “Central Bank of China refrained from adding funds to the market pushing money market rates higher,” as well as “China’s biggest banks tripled the amount of bad loans written off in the first half, cleaning up their books ahead of what may be a fresh wave of defaults,” dragging down immensely the Asian bourses. Hence, the ‘Aussie’ was severely wounded by the negative developments on Australia’s biggest trading partner, sending the cross immensely higher.
Technical Perspective on the EUR/AUD
At the time of writing, the cross is trading at 1.4272, up 0.52%, flirting with 1.4300 area (having touched earlier 1.4297). The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15-minutes timeframe chart. Daily pivot point support can be found at 1.4165, 1.4123, 1.4094, and resistance at 1.4279, 1.4315 and 1.4379, respectively.
EUR/AUD higher as Chinese bank “woes” hurt the “Aussie”
The EUR/AUD was driven abruptly downwards after the solid Australian CPI data released, indicating that there is no need for immediate RBA tightening action. Australian CPI rose 1.2% (much more the expected 0.8% in the third quarter), mainly due to the rise in fuel and travel costs. The inflation pressures were “priced in” by markets as “Aussie” positive, due to the fact that obviously the inflation pressures pushed out a potential RBA rate cut, dragging down the cross. However later on, things changed much as news wires mentioned that “Central Bank of China refrained from adding funds to the market pushing money market rates higher,” as well as “China’s biggest banks tripled the amount of bad loans written off in the first half, cleaning up their books ahead of what may be a fresh wave of defaults,” dragging down immensely the Asian bourses. Hence, the ‘Aussie’ was severely wounded by the negative developments on Australia’s biggest trading partner, sending the cross immensely higher.
Technical Perspective on the EUR/AUD
At the time of writing, the cross is trading at 1.4272, up 0.52%, flirting with 1.4300 area (having touched earlier 1.4297). The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15-minutes timeframe chart. Daily pivot point support can be found at 1.4165, 1.4123, 1.4094, and resistance at 1.4279, 1.4315 and 1.4379, respectively.