EUR/AUD is on the front foot on RBA dovish sentiment


  • 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. 

EUR/AUD levels

EUR/AUD

Overview
Today last price 1.6253
Today Daily Change 0.0098
Today Daily Change % 0.61
Today daily open 1.6155
 
Trends
Daily SMA20 1.6238
Daily SMA50 1.6241
Daily SMA100 1.6206
Daily SMA200 1.6064
 
Levels
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

 

 

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