- EUR/AUD rallied as the Aussie dropped hard overnight.
- EUR/AUD bulls looking for a discount as the price is meeting resistance.
EUR/AUD is trading at 1.6648 and slightly down on the session so far following a surge to the upside midweek despite the weakness in the euro.
The cross rallied from a low of 1.6461 to a high of 1.6685 where it meets technical resistance structure for which is expected to hold.
The markets have not been kind to the commodity complex for which AUD trades as a proxy, so regardless of the French and german lockdowns, the Aussie pulled the short straw.
On the coronavirus latest, twelve US states have set records for hospitalized COVID-19 patients and Germany and France announced plans to shut down.
France had officially announced that it will go back into a nationwide lockdown overnight starting this week.
The new measures in France echo the eight-week lockdown e enforced in the spring when the hospitalisations caused by the coronavirus reached a peak.
There is more on the official announcements below:
Commodity complex shot
Copper was down over 0.5% and West Texas Intermediate is off a whopping 4.25% in overnight trade, dragging the CRB index down by over 2.6% into the close on Wall Street.
Additionally, which is potentially hurt the Aussie was yesterday's headline and trimmed mean measures of inflation for the third quarter.
Despite being roughly in line, the yearly wasn't so pretty, but hardly a shock. Therefore, there was no immediate reaction but the data does not bode well for the bulls.
Headline rebounded 1.6% QoQ vs the market's expectations of 1.5%.
Meanwhile trimmed mean for the same quarter was +0.4% and slightly below the +0.5% expected.
However, the annual print at 1.2% which was unchanged from the prior quarter is still, therefore, well below the RBA's 2-3% target band.
While the data holds little sway over next week's RBA meeting where the central bank is expected to ease policy further, it all goes into the mix.
Looking ahead for the day, the ECB’s policy meeting is also expected to highlight these intensifying risks.
''Most forecasters expect further easing steps to wait until the December meeting which includes new forecasts. President Lagarde should strike a dovish tone today,'' analysts at Westpac explained.
EUR/AUD price analysis
|Today last price||1.6643|
|Today Daily Change||-0.0029|
|Today Daily Change %||-0.17|
|Today daily open||1.6672|
|Previous Daily High||1.6686|
|Previous Daily Low||1.6461|
|Previous Weekly High||1.6828|
|Previous Weekly Low||1.6486|
|Previous Monthly High||1.6593|
|Previous Monthly Low||1.6124|
|Daily Fibonacci 38.2%||1.66|
|Daily Fibonacci 61.8%||1.6547|
|Daily Pivot Point S1||1.6526|
|Daily Pivot Point S2||1.6381|
|Daily Pivot Point S3||1.6301|
|Daily Pivot Point R1||1.6752|
|Daily Pivot Point R2||1.6832|
|Daily Pivot Point R3||1.6977|
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