EURAUD Tests Support Level Ahead Of German & Aussie Data

EURAUD tests a key support level at 1.5450 ahead of German and Australian data. 

Germany will have consumer confidence data, while the Australian economy will look at the latest inflation.

EURAUD – Weekly Chart

EURAUD - Weekly Chart

The GfK German consumer confidence data has been rebounding slowly from an October bottom at -42.8. That was a steady decline from -6.7 in February of last year. The numbers have made a slow recovery as consumers remain cautious about interest rates and inflationary costs. However, analysts expect another improvement to the -33 level.

Australia is expected to see another rise in inflation, from 7.3% to 7.5%. Still, the country’s treasurer expects the worst to be over. Ahead of the Australian Bureau of Statistics (ABS) data for the final quarter of 2022, Chalmers said he was optimistic that price increases would now moderate in 2023. He added that cost of living pressures would continue to hurt millions of Australians. Still, he would provide some relief in the coming federal budget in May.

“The Australian economy will begin to soften a bit this year, which is the inevitable likely consequence of higher interest rates and a slowing global economy,” Chalmers said.

“That’s why our economic plan is cost-of-living relief in a responsible way and growing the economy without adding to these inflationary pressures,” Chalmers said.

The Aussie dollar is gaining this week, and the double dose of data will determine whether the 1.5400 level holds for the EURAUD.

The European Central Bank has been hawkish with plans for 50 bps interest rate hikes to take the base rate to a “restrictive” level more in line with the US Federal Reserve’s 4%. “Expect us to raise rates by 0.5% in February and March and expect us to not be done by then and that more steps will follow in May and June,” said Klaas Knot, Dutch central bank chief.

Recent News
Start Trading Now !

Try our demo account for free to learn trading. When you’re ready, switch to a live account and start trading for real.

Popular posts
ATFX

Restrictions on Use

Products and Services on this website are not suitable for Hong Kong residents. Such information and materials should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制: 本網站的產品及服務不適合香港居民使用。網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://atfxgm.eu/en/ to proceed.

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://atfxconnect.com