Bulls are rushing to EURAUD

August 21, 2015

The euro is being propelled higher as investors shed the US dollar as they push out expectations for tighter monetary policy in the US. Also, there’s some speculation that the common currency is benefiting from a reversal of the carry trade, as investors look to low risk assets.

The typical safe haven currencies are the USD and yen, but the former is being sold-off as the market pair’s expectations for monetary policy tightening in September, making the yen and euro attractive options. Being a heavily commodity-backed currency, the Australian dollar is facing the full force of risk-adverse investors, particularly because the negative sentiment is being largely propelled by fears about the health of Australia’s largest trading partner, China.

China’s sad manufacturing sector

Conditions within China’s manufacturing sector continue to deteriorate, which has led to another sell-off in the Australian dollar. Caixin’s manufacturing PMI for August deteriorated for the sixth straight month, falling to a 77-month low at 47.1. This indicates that sentiment amongst China’s private sector manufacturers is toxic, which doesn’t bode well for the overall health of the economy.

The data added the already noxious sentiment in emerging markets and hit commodity-backed currencies hard. AUDUSD plummeted towards support just above 0.7280, before regaining some lost ground later in the session as the US dollar was mauled by bears. AUDJPY wasn’t as lucky, as the distain for risk adverse currencies, like the aussie, and the US dollar made the yen the currency of choice, as well as the euro.

This has pushed EURAUD through an important resistance zone around 1.5300 – high since March 2014. All eyes are now on a big resistance zone around 1.5500 and then 1.5830, with the later representing the pair’s high since early 2010.

Publication source
FOREX.com information  FOREX.com reviews

December 9, 2016
Gold is tired of moving in the range
On the daily chart of gold, the bears remain control over the market. As long as quotes are below $ 1,195, their positions are not under threat. The update of the December low can lead to the continuation of downward movement towards $1,116...
December 9, 2016
Oil prices ignored bigger-than expected drop
After an Asian consolidation oil prices moved higher on Thursday. The price slightly grew and reversed the minor part of its losses. The benchmark approached 53.50 post-Europe open. The price stayed below the 50 and 100 EMAs in the 1 hour chart...
December 9, 2016
EURUSD Trades Below Significant Resistance
The Italian referendum weighed on EUR/USD, fell to a year low of 1.0506 on 5th December. It was followed a quick recovery, as a result of the rebound of the Euro after testing the significant support level at 1.0500. Yet it retraced after testing the significant resistance level at 1.0800...

FxPro Rating
Vantage FX Rating
Orbex Rating
Larson&Holz IT Ltd Rating
HotForex Rating
FIBO Group Rating

OptionsXO Rating
EZTrader Rating
OptionRally Rating
Porter Finance Rating
24option Rating
Grand Option Rating