EUR/AUD on its backfoot in early Tokyo session
- EUR/AUD struggling to keep gains found in Asia.
- EU GDP, AU employment promises a shakeup for the pair beginning Wednesday.
EUR/AUD is fighting to back ground in Tokyo trading, testing into 1.5660 territory before settling back to 1.5645 as of writing. The Euro is clawing its way back after falling in Monday's trading session that saw the pair extend its losses from Friday.
Euro bulls will be looking to Wednesday, when the European Union drops GDP figures for the Eurozone at 10:00 GMT. With recent comments from the European Central Bank (ECB), Europe looks set to begin increasing rates later this year, despite the risk of continued shocks to equities and bond markets as traders flee into safe havens every time they are reminded that inflation leads to rising interest rates, which threatens to cut off global markets from a decade-long easy money approach to central planning.
Australia will post unemployment figures to follow up the EU, with Unemployment Rate and Employment Change numbers dropping at 01:30 GMT on Thursday. A positive beat to jobs will help to push the Reserve Bank of Australia (RBA) closer to rate increase territory, as lagging economic growth and mixed figures keep the central bank pinned to the mat, struggling to find inflation. NAB analysts anticipate a possible rate increase from the RBA this year if employment and wages firm up going forward, but there is a very real risk that the RBA will choose to stand pat on rates for the remainder of the year, and into next as well.
EUR/AUD Technicals
The pair has been range-bound for several days, and bearish pressure appears to be winning the battle against support at 1.5650. A breakdown from here could see EUR/AUD begin another leg downwards to the 1.5435 region. Long-term, the pair iss till notably bullish, with price trading well above the 34 EMA, and the last swing low beginning to come in-line with the 200-day SMA, near 1.5107.
Today's pivot points:
R2: 1.5744
R1: 1.5687
PP: 1.5655
S1: 1.5598
S2: 1.5566