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6 Aug 2013
EUR/AUD, on never-ending downfall?
FXstreet.com (Chicago) - EUR/AUD dropped to 1.4787 lows upon release of the RBA’s interest rate for Australia.
The Reserve Bank of Australia decided to lower interest rates at 2.50% vs. previous 2.75% as a potential hawkish perception of the Australian economy indicated improvements and positive sentiment in towards the country. Governor Glenn Stevens stated that overall expectations for the economy were positive on the official release:
“In Australia, the economy has been growing a bit below trend over the past year. This is expected to continue in the near term as the economy adjusts to lower levels of mining investment. The unemployment rate has edged higher. Recent data confirm that inflation has been consistent with the medium-term target. With growth in labour costs moderating, this is expected to remain the case over the next one to two years, even with the effects of the recent depreciation of the exchange rate.”
Price action indicated a bearish bias in regards to the euro as the pair dropped twice below immediate support at 1.4846 (August 1st highs) before the release of the facts. Trading at 1.4812, the pair had broken most supports at 1.4846 (August 1st highs), 1.4824 (August 5th lows) above 1.4804 (August 2 lows). On the upside, resistances were set at 1.4882 (August 5th highs), 1.4903 (July 31st highs) ahead of 1.4941 (August 2nd highs). The FXstreet trend index reported the pair as strongly bearish on one-hour timeframe analysis with a MACD and CCI pointing down.
The Reserve Bank of Australia decided to lower interest rates at 2.50% vs. previous 2.75% as a potential hawkish perception of the Australian economy indicated improvements and positive sentiment in towards the country. Governor Glenn Stevens stated that overall expectations for the economy were positive on the official release:
“In Australia, the economy has been growing a bit below trend over the past year. This is expected to continue in the near term as the economy adjusts to lower levels of mining investment. The unemployment rate has edged higher. Recent data confirm that inflation has been consistent with the medium-term target. With growth in labour costs moderating, this is expected to remain the case over the next one to two years, even with the effects of the recent depreciation of the exchange rate.”
Price action indicated a bearish bias in regards to the euro as the pair dropped twice below immediate support at 1.4846 (August 1st highs) before the release of the facts. Trading at 1.4812, the pair had broken most supports at 1.4846 (August 1st highs), 1.4824 (August 5th lows) above 1.4804 (August 2 lows). On the upside, resistances were set at 1.4882 (August 5th highs), 1.4903 (July 31st highs) ahead of 1.4941 (August 2nd highs). The FXstreet trend index reported the pair as strongly bearish on one-hour timeframe analysis with a MACD and CCI pointing down.