- EUR/AUD registered fresh low of the week around 1.5850 during early Thursday.
- The pair declined after China released upbeat trade balance data.
- Presently, 1.5780 seem immediate support while 1.6000 can act as adjacent resistance.
The EUR/AUD pair dropped to the week’s low near 1.5850 heading towards European session on Thursday. The prices slipped after China released better than expected January month figures of trade balance. Adding to the strength was recent optimism at US-China trade deal and weaker EU data published Wednesday.
The Australian Dollar (AUD) gained more than 100 pips against the Euro on Wednesday as comments from the US President favoring a trade deal with China and likely extending dates to levy fresh tariffs after the March 01 deadline helped the Aussie. Also, weaker than expected -0.4% contraction in the Eurozone industrial production to -0.9% dragged the EUR down.
During early Thursday, China released January month trade balance data that beat market consensus in both the Chinese Yuan (CNY) and USD terms. In case of the CNY, the trade balance figures came in at 271.42 billion compared to 395 billion CNY noted in the December last year. On the USD part, the trade balance beat expectations of $33.50 billion by registering $39.16 billion surplus.
Looking forward, investors may observe developments at the US-China trade front on the first day of negotiation. Treasury Secretary Steve Mnuchin sound optimistic before the start and so was the mood of the US President Donald Trump on late yesterday. It should also be noted that growth domestic product (GDP) numbers for Germany and Eurozone could play their part of catalysts too.
The German GDP for the last quarter of 2018 is likely to have growth by +0.1% against -0.2% contraction noted in third quarter. In case of seasonally adjusted Eurozone GDP figures, the quarterly and yearly change over the fourth quarter of 2017 are both likely to meet initial estimates of 0.2% and 1.2% respectively.
EUR/AUD Technical Analysis
Successful break of 1.5850 can drag the pair to 1.5780 and the 1.5720 during further declines whereas 1.5670 and 1.5580 may challenge the bears past-1.5720.
On the flipside, 1.6000 round-figure could keep restricting near-term advances, a break of which might not hesitate flashing 1.6070 and 1.6155 on the chart.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.