- Markets priced in a greater risk of an October RBA rate cut.
- ECB delivered on all policy fronts but market expects more to come.
EUR/AUD is on the front foot following a poor result in the Aussie Unemployment data which saw a rise on the number of 0.1% vs expectations and prior. Subsequently, EUR/AUD shot up to the vicinity of the 1.63 handle overnight.
EUR/USD is currently trading at 1.6252, rather flat on the Asia session so far having done most of the leg work on the data release and subsequent trade thereafter thought European markets. The US supply took the pair down to a low of 1.6234.
"AUD/USD was already softening in sympathy with CNH when Australia’s August labour force survey revealed a 12-month high unemployment rate of 5.3%. The Aussie fell through 0.6800 as markets priced in a greater risk of an October RBA rate cut," analysts at Westpac explained.
More to be expected from ECB
Meanwhile, looking to the ECB, while the central bank delivered on all policy fronts; the markets were looking for more, so the euro is unlikely to find too much of a bid with pending rate cuts around the corner - Indeed, the "adequacy" of the package, as well as the introduction of a tiered deposit system, left the markets puzzled which makes for a treacherous plan in the euro, especially given the Federal Reserve's hawkish cut which exposes the downside in EUR crosses.
|Today last price||1.6253|
|Today Daily Change||0.0098|
|Today Daily Change %||0.61|
|Today daily open||1.6155|
|Previous Daily High||1.6184|
|Previous Daily Low||1.6117|
|Previous Weekly High||1.6168|
|Previous Weekly Low||1.5884|
|Previous Monthly High||1.6788|
|Previous Monthly Low||1.6106|
|Daily Fibonacci 38.2%||1.6158|
|Daily Fibonacci 61.8%||1.6143|
|Daily Pivot Point S1||1.612|
|Daily Pivot Point S2||1.6085|
|Daily Pivot Point S3||1.6053|
|Daily Pivot Point R1||1.6187|
|Daily Pivot Point R2||1.6219|
|Daily Pivot Point R3||1.6254|
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.