- EUR/AUD trades near 1.6010 during early Wednesday.
- The pair grew as Australia’s fourth-quarter data came in weak.
- Traders may now concentrate on ECB meeting for further impulse.
The Australian Dollar (AUD) trades around 1.6010 against the EUR during early Asian session on Wednesday. The EUR/AUD pair rose 30 pips to the intra-day high of 1.6024 after Australia’s Q4 GDP missed forecast and previous figures. The pair traders may now await monthly retail sales and trade balance details ahead of concentrating on the ECB meeting.
The Australian Bureau of Statistics released fourth-quarter gross domestic product (GDP) figures on early Wednesday. The report stated lower than market forecast 0.3% growth of 0.2% on a quarterly basis. The yearly figures showed a 2.3% growth compared to the revised down the figure of 2.7% during the same time last year.
With soft Aussie GDP figures, the EUR/AUD pair bounced off the 50-day simple moving average (SMA) number of 1.5950.
Investors may now concentrate on Thursday’s monetary policy meeting of the European Central Bank (ECB). Though, early-day release of Australian retail sales, trade balance and Eurozone GDP can also entertain traders.
The Australian trade balance is likely to soften to 3,000M during January month versus 3,681M prior whereas retail sales (MoM) might grow +0.3% from -0.4% registered previous month.
Eurozone GDP figures for fourth-quarter are largely expected to remain unchanged with quarterly growth likely being at 0.2% and a 1.2% growth forecast for YoY mark.
The ECB is broadly expected to announce no change in its benchmark rates. However, recent weakness in German and EU stats push traders to expect a downward revision to the central bank’s growth forecast and a cautious tone from President Mario Draghi.
EUR/AUD Technical Analysis
Successful reversal from 50-day SMA may fuel prices further towards 1.6070 and then to 1.6100.
On the downside break under 1.5950 SMA figure may highlight the 100-day SMA level of 1.5880 and 200-day SMA level of 1.5865.
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