EUR/AUD holding above 1.59 as Aussie bulls hope for relief

The EUR/AUD is drifting lower heading into the Asia session, testing into 1.5920 as markets gear up for another hectic week. Risk aversion was the name of the game last week and the wheels came off the Aussie against the Euro, leaving the EUR/AUD trading near two-year highs as the AUD continues to bury its head in the sand.

Protectionism takes over headlines

Trump's trade tariffs continue to be a point of focus for the European Union (EU) and market participants are bracing for the EU's coordinated response to the 25% trade tariff imposed on steel that crosses the US border. Geopolitical tensions threaten to keep hanging over markets, and risk assets have been hobbled as uncertainly sweeps across the globe. The G20 finance ministers' meeting is taking place in Europe beginning on Monday, and much of the conversation is expected to revolve around tariffs, protectionism, and thinly-veiled plans to circumvent or undermine the US' recent protectionist policy moves.

The Aussie sees a thin macro calendar this week, though the Reserve Bank of Australia's (RBA) Meeting Minutes that drop on Tuesday at 01:30 GMT will give traders an inside look at the central bank's internal dialogue about their plans moving forward. The RBA is widely expected to stand pat on interest rates for the rest of 2018, but the Meeting Minutes will provide a clearer picture of the RBA's decision-making process heading forward.

EUR/AUD Technicals

The pair's grind upwards leaves it within spitting distance from resistance at 1.5978 (two-year high), while support from 1.57 (34-day EMA) rests far below current price action. Intraday levels see resistance close by at 1.5938 (Friday's high), while a swing lower would see immediate support from 1.5850 (Friday's swing low).