EURAUD Exchange Rate has Data Ahead on Monday

The EURAUD exchange rate has data on Monday that could add volatility to the pair. 

EURAUD – Daily Chart

EURAUD – Daily Chart 

The price of EURAUD dipped on Friday ahead of resistance at the 1.6627 level. That will be the barrier to further gains in the pair. 

The economic calendar for the week starts with TD-MI inflation from Australia at 8 am HKT. That will be followed at 8:30 am with ANZ job advertisements for October. 

That will move to Europe where a busy day of manufacturing data for October includes data from Spain, France, Germany, and the Eurozone. 

The euro has bounced against the Australian dollar recently, despite an imbalance in interest rates. The Australian Reserve Bank meets on Monday and will deliver its latest interest rate decision on Tuesday. 

Analysts do not expect to see any change from the RBA on Tuesday and the major banks differ on their expectations for an initial rate cut. ANZ bank expects rates to drop in February. Commonwealth Bank and Westpac also agree on the February timeframe and NAB stands alone with a March expectation. 

Eurozone money markets are now pricing in a terminal rate of around 1.80%, which is well below the ECB’s current policy rate of 3.25%. Economists at the major banks think the ECB will need to go further and potentially cut rates by 50 basis points per meeting over the next six months. 

“We see risks that markets might eventually price a terminal rate marginally below 1.50%,” Nomura analysts wrote. 

Economists at Morgan Stanley stated that the ECB’s nominal rate might even be as low as 1.0-1.4%. This factors in a 2% inflation target and accounts for a weak economy.

Recent News
Start Trading Now!

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

Popular posts
ATFX

Account Registration Unavailable

Please note that you may be accessing this page from outside South Africa. For retail and professional inquiries regarding AT Global Markets SA (Pty) Ltd, kindly reach out to us at [email protected]

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://www.atfx.com/en/ to proceed.

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。