EUR/AUD: Price trapped in consolidation, traders await key catalysts
|- EUR/AUD in consolidation on key data and event week.
- EUR/AUD trapped between 20-DMA and 50-DMA.
EUR/AUD is flat in the early hours of Asia this week ahead of the Tokyo open while traders brace for Chinese data as well as the Reserve Bank of Australia's previous meeting's Minutes. EUR/AUD is currently trading at 1.6268 and within a tight 20 pip range.
It has been a slow start to the week with the various holidays on Monday, but the tempo will likely pick up starting from today and throughout the week as a number of key data and events kick in.
Key data events taking place this week
We start with today's Chinese data dump along with the Reserve Bank of Australia's minutes. However, the Australian Lamour Market data will be the key data event with where slowing employment growth will likely spur-up sentiment for a rate cut from the Reserve Bank of Australia again.
"A number close to the market, however, is unlikely to provide the smoking gun for a Nov cut. Raw historical data for Sep is firmly positive and as such a sharp drop in the headline jobs print is less likely,"
analysts at TD Securities argued.
On the European side of things, the EU Leaders Summit will draw from attention considering Brexit, although other discussions taking place around such topics as EU long-term budget and priorities for the next 5 years should also grab the market's attention with respect to the value of the euro and the European Central Banks task at hand.
EUR/AUD levels
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