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EUR/AUD profits taken through the 200dma ahead of capex

FXStreet (Guatemala) - EUR/AUD is trading at 1.4655, up 0.18% on the day, having posted a daily high at 1.4656 and low at 1.4622.

EUR/AUD has been a major driving force within the crosses for the Aussie of late with much of the attention surrounding the Eurozone and requirements of monetary stimulus in the economy. However, regardless of a weaker outlook for the single currency, the cross has broken the 200dma at 1.4599, underpinned by euro demand, and although the Aussie fundamentals are not new surrounding the Aussie, (iron ore and RBA jawboning) sell offs in the currency are still a reminder that they are lurking in the background embedded in the price but can resurface in times of supply and positioning and continue to dent the reputation of Australian dollar.

We now await next weeks Q3 GDP for Australia and up ahead in today's calendar is the all important private capex input to that number. This data has become more key of recent times as the RBA’s quest for finding stability in the economy away from just mining investment and the resources sector and has a big part to play in the countries GDP of 25-35%. Analysts a Westpac Banking Corporation explained that the initial reaction on AUD will be to the Q3 actual capex and said this could produce revisions to GDP estimates (we are on a preliminary 0.8% q/q, 3.0% y/y).

EUR/AUD noteworthy levels

Spot is presently trading at 1.4656, and next resistance can be seen at 1.4703 (Daily Classic R1), 1.4704 (Daily High), 1.4778 (Weekly Classic R2), 1.4779 (Daily Classic R2) and 1.4917 (Daily Classic R3). Support below can be found at 1.4642 (Yesterday's High), 1.4633 (Hourly 20 EMA), 1.4626 and 1.4599 (200dma).

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