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12 Sep 2013
EUR/AUD ripping short-term on negative Aussie jobs
FXstreet.com (Barcelona) - The EUR/AUD ripped higher following the release of a surprisingly poor monthly employment report out of Australia. Data later out of Europe will drive things now that the immediate reaction lower has played out.
EUR/AUD lower now, but will European data alter that later?
The Australian employment data came out far worse than expectations which caught many an analyst and most traders by surprise – judging by both the recent run-up in the Aussie Dollar and the spike lower that occurred just after the data were released. The developing story line recently has had the Australian economy rebounding sharply along with / as a result of a recovery in China. Today’s numbers out of Australia put that narrative in doubt – at least immediately following the data release.
EUR/AUD traders will get more data out of Europe in several hours when the ECB releases their Monthly Report at 08:00 GMT and the EuroZone Industrial Production numbers are released shortly thereafter.
Technical outlook for EUR/AUD
Technicians have noted the technical breakdown and bearish follow through in the EUR/AUD recently. However, they also note that the cross was oversold and due for a bounce. Today, that bounce is happening, but only time will tell if it lasts. Support is now set at today’s low at 1.4235 while there are many layers of resistance starting with Monday’s peak at 1.43857.
EUR/AUD lower now, but will European data alter that later?
The Australian employment data came out far worse than expectations which caught many an analyst and most traders by surprise – judging by both the recent run-up in the Aussie Dollar and the spike lower that occurred just after the data were released. The developing story line recently has had the Australian economy rebounding sharply along with / as a result of a recovery in China. Today’s numbers out of Australia put that narrative in doubt – at least immediately following the data release.
EUR/AUD traders will get more data out of Europe in several hours when the ECB releases their Monthly Report at 08:00 GMT and the EuroZone Industrial Production numbers are released shortly thereafter.
Technical outlook for EUR/AUD
Technicians have noted the technical breakdown and bearish follow through in the EUR/AUD recently. However, they also note that the cross was oversold and due for a bounce. Today, that bounce is happening, but only time will tell if it lasts. Support is now set at today’s low at 1.4235 while there are many layers of resistance starting with Monday’s peak at 1.43857.