EUR/AUD bulls banking on a benign Aussie CPI outcome

  • EUR/AUD is currently trading on the bid following a daily correction. 
  • Aussie CPI outcome will be important for the bulls targeting higher daily highs. 

EUR/USD is trading at 1.6051 and flat on the sessions so far, consolidating the recent bullish rally into daily resistance. 

The price is stuck between a pre-Consumer Price Index event range of 1.6040 and 1.6058. 

The euro was picking up overnight on the back of continued weakness in the US dollar and this enabled the cross to move higher from the corrective lows at the end of last week's business just below 1.5900.

Meanwhile, the event of the day will be Aussie Consumer Price Index for the second quarter. 

''We think +0.8% QoQ, +3.9%y/y (mkt: +0.7%, +3.7%) for headline CPI, and +0.5% QoQ, +1.6% YoY for trimmed mean (mkt: +0.5%, +1.6%),'' analysts at ANZ Bank said. 

Such an outcome should reinforce the Reserve Bank of Australia’s view that “while a pick-up in inflation and wages growth is expected, it is likely to be only gradual and modest.”

Therefore, assuming the RBA maintains its low profile on the question of QE and lockdowns, there would be expected to be further downside in the Aussie for the foreseeable future as central bank divergences play out. 

This could be reflected in today's response to the CPI data and elevate the cross to fresh daily highs in due course. 

With that being said, the markets are unlikely to get too carried away into month-end as well as the Fed and US Gross Domestic Product on Thursday. 

EUR/AUD technical analysis

Bulls are in control and seek a higher daily high in a continuation of the bullish trend. 








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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Focus on two-month-old support near 1.1750

EUR/USD remains pressured around three-week lows, consolidate the biggest daily fall in a month. Firmer Momentum back-up to the south-run, 50-DMA break favor sellers.


GBP/USD: Bulls and bears will battle this out near the 61.8% golden ratio

The GBP/USD price has corrected 50% of the hourly bearish impulse. The bulls have been chipping away as profits are taken with bears moving aside one by one. This has resulted in a slow decelerating correction from which could attract sellers again. 


EUR/USD: Focus on two-month-old support near 1.1750

EUR/USD remains pressured around three-week lows, consolidate the biggest daily fall in a month. Firmer Momentum back-up to the south-run, 50-DMA break favor sellers.


Ethereum Classic Price Prediction: ETC coils up for 40% upswing

Ethereum Classic price shows choppy action as it approaches the lower trendline of an ascending parallel channel. The $52.92 support floor is likely to be tagged before a 40% upswing originates.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more