EUR/AUD falls back to 1.59 handle as risk appetite recovers
- The Aussie took a tumble on a GDP miss and soured risk appetite, but markets have stabilized.
- Eurozone GDP numbers due today could produce some volatility if the numbers miss widely enough.
The EUR/AUD is back to Tuesday's highs after a brief run on risk appetite in the pre-Asia session, currently trading just below 1.5920.
The Euro climbed against the Aussie in the overnight markets after the pair traded flat for two days, but that gain has been walked back in the Tokyo session, and the pair is set to drift back into consolidation.
The Aussie gave up ground after the Australian GDP figures failed to impress, coming out lower than expected, while risk appetite in the broader markets shriveled on the news that Gary Cohn, Donald Trump's top economic advisor, is resigning from his position. Market sentiment has leveled out in Tokyo, and the EUR/AUD pair has shed some of its off-market stretch.
Today will see non-preliminary GDP figures for the Eurozone at 10:00 GMT, with the year-on-year data expected at 2.7% and the quarter-on-quarter numbers forecast at 0.6%. These GDP figures are expected to be quite accurate, so little market movement is likely unless a big hit or miss should occur.
EUR/AUD Technicals
The pair is still well into bullish territory, with the 200-day SMA far below at 1.5170, and the 8-day EMA is still lending support to the current run up the charts. H4 candles have the pair holding above a three-week consolidation zone, and the upper bound can be expected to act as support moving forward should the Aussie develop into a bullish push. Intraday support is currently priced at 1.5825 and 1.5785 with resistance thin at 1.5975 and 1.6050.