Fourth Quarter Inflation Data Puts Australian Dollar Under Pressure

• 31 Jan 2018

EUR/AUD

The Euro has gained some momentum in a bullish move to break the 1.534 price level. Momentum indicators confirm a bullish bias and the pair is also testing the high price SMA. A break of this level combined with a break of the zero line on MACD will provide weight to the uptrend.

Impact event: Eurozone Core CPI data will be released at 12:00 GMT+2 and will impact all Euro pairs.

GBP/AUD

The GBP/AUD pair has broken above the high price SMA with a simultaneous break of the zero line on MACD. The uptrend is also supported with a bullish trajectory on MACD. Price action will likely target the 1.7660 price level.

AUD/USD

The Australian Dollar has enjoyed a bullish run against the U.S. Dollar, however, there are signs that buyers are losing steam. A series of doji candles indicate that buyers’ appetite may be waning and RSI has descended towards the 70 resistance line. A break of the resistance line on RSI would be required to confirm a reversal.

Impact event: Federal Reserve Interest Rate Decision will be announced at 21:00 GMT+2 and will impact all USD pairs.

AUD/NZD

The AUD/NZD pair is a mixed bag. A break of the high price SMA to the downside coupled with a bearish trajectory on RSI may indicate that the NZD is winning the tussle. However, MACD is close to breaking the zero line to the upside. A break of the low price SMA is required to confirm the downtrend.