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14 Feb 2014
EUR/AUD consolidating at key resistance
FXStreet (Guatemala) - EUR/AUD has stuck to a range in the 1.52 handle through Europe and NY leading into Asia, marking a high of 1.5281 and 1.5200.
The pair has been consolidating since the Australian employment fell 3.7k in January, which was well below expectations and the worst print in a decade that took the pair as low as 0.8227. Today from the calendar from Europe we had the final reading of German CPI was unchanged from the preliminary estimate of 1.2% Y/Y. Yellen’s testimony before the Senate Banking Committee has been rescheduled due to the impending snow-storm. Coming up we will have Chinas Consumer Price Index but, as Sean Callow, strategists at Westpac Banking Corporation ABN explained, “shouldn’t have much impact. Inflation isn’t a very pressing concern in China right now, with growth having decelerated and the stronger yuan helping cap inflation. Any AUD or Asian FX response to a divergence from 2.4% y/y consensus on CPI should be very short-live”. Also noted by Callow, “ The Aussie dipped under 0.8970 in the Sydney morning as RBA’s Kent spoke on “The Resources Boom and the Australian Dollar”. Naturally much of the speech was big picture with plenty of caveats on the uncertainty of FX movements but there was some selling on Kent’s line that “a correction in the exchange rate might be in prospect.” Overall the impression remains that the RBA is a lot less concerned about AUD than it was throughout 2013”. As the pair consolidates, RSI (14) reads 57.31 while EMA’s are still offering a bullish bias ahead of key resistance, 1.5260.
The pair has been consolidating since the Australian employment fell 3.7k in January, which was well below expectations and the worst print in a decade that took the pair as low as 0.8227. Today from the calendar from Europe we had the final reading of German CPI was unchanged from the preliminary estimate of 1.2% Y/Y. Yellen’s testimony before the Senate Banking Committee has been rescheduled due to the impending snow-storm. Coming up we will have Chinas Consumer Price Index but, as Sean Callow, strategists at Westpac Banking Corporation ABN explained, “shouldn’t have much impact. Inflation isn’t a very pressing concern in China right now, with growth having decelerated and the stronger yuan helping cap inflation. Any AUD or Asian FX response to a divergence from 2.4% y/y consensus on CPI should be very short-live”. Also noted by Callow, “ The Aussie dipped under 0.8970 in the Sydney morning as RBA’s Kent spoke on “The Resources Boom and the Australian Dollar”. Naturally much of the speech was big picture with plenty of caveats on the uncertainty of FX movements but there was some selling on Kent’s line that “a correction in the exchange rate might be in prospect.” Overall the impression remains that the RBA is a lot less concerned about AUD than it was throughout 2013”. As the pair consolidates, RSI (14) reads 57.31 while EMA’s are still offering a bullish bias ahead of key resistance, 1.5260.