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4 Mar 2014
EUR/AUD dropping on strong Australian data
FXStreet (Guatemala) - EUR/AUD has met supply on strong Australian Building Permits data that beat expectations both year on year and month on month.
Year on year read as 34.6% vs 24.0% and month on month came in as 6.8% vs 2.0%. EUR/AUD had been building up some demand towards 1.5400 but dropped sharply on the release to 1.5340, currently steadying in 1.5350’s. RSI (14) has fallen to 45.0 offering further room to the downside ahead of the RBA interest rate decision and statement. Sean Callow, analyst at Westpac Banking Corporation ABN said Australia’s crowded calendar continues today with notable data and the RBA monthly meeting. “The RBA Board is of course firmly in neutral mode, limiting the tension over today’s meeting (2:30pmSyd/11:30am Sing/HK). In Feb the RBA concluded its statement by saying “the most prudent course is likely to be a period of stability in interest rates”, a phrase likely to be repeated after a month without major change in Australia’s outlook...However it would be a big surprise if the RBA resumed its AUD jawboning after a mere one month pause, especially given the apparently substantial role AUD decline played in the Q4 inflation upside surprise”.
Year on year read as 34.6% vs 24.0% and month on month came in as 6.8% vs 2.0%. EUR/AUD had been building up some demand towards 1.5400 but dropped sharply on the release to 1.5340, currently steadying in 1.5350’s. RSI (14) has fallen to 45.0 offering further room to the downside ahead of the RBA interest rate decision and statement. Sean Callow, analyst at Westpac Banking Corporation ABN said Australia’s crowded calendar continues today with notable data and the RBA monthly meeting. “The RBA Board is of course firmly in neutral mode, limiting the tension over today’s meeting (2:30pmSyd/11:30am Sing/HK). In Feb the RBA concluded its statement by saying “the most prudent course is likely to be a period of stability in interest rates”, a phrase likely to be repeated after a month without major change in Australia’s outlook...However it would be a big surprise if the RBA resumed its AUD jawboning after a mere one month pause, especially given the apparently substantial role AUD decline played in the Q4 inflation upside surprise”.