Daily Forex News and Watchlist: EUR/AUD

January 26, 2022

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Daily Forex NEWS EUR/AUD: A lack of top-tier reports scheduled means we should mind risk sentiment.

Will today’s moves inspire a break-and-retest move on euraud?

Before moving on, ICYMI, yesterday’s watchlist checked out GBP/AUD’s range amidst risk aversion

flows. Be sure to check out if it’s still a valid trade!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

U.S. flash manufacturing PMI dips from 57.7 to 15-month low of 55.0 in Jan.

U.S. flash services PMI slows down from 57.6 to 18-month low of 50.9 in Jan.

AU NAB business confidence slides 24 points to -12 in Dec. as surge in coronavirus cases hits consumer spending and staffing

AU quarterly CPI accelerates from 0.8% to 1.3% (vs. 1.0% expected) in Q4 2021

AU annual inflation closer to middle of RBA’s 2% – 3% target range at 2.6% (vs. 2.3% expected)

AU trimmed mean CPI – RBA’s preferred inflation gauge – jumps from 0.7% to 1.0% (vs. 0.7% expected)

Upcoming Potential Catalysts on the Forex Economic Calendar:

Germany’s IfO business climate at 9:00 am GMT
U.K.’s CBI industrial order expectations at 11:00 am GMT
U.S. CB consumer confidence at 3:00 pm GMT
Australian markets out on Australia Day holiday (Jan 26)

Daily Forex NEWS EUR/AUD: What to Watch: EUR/AUD:

Concerns over the Fed’s tapering/tightening schedule have dragged on “risky” bets like the comdolls, which is probably why euraud has staged a solid upswing since last week.

The euro broke above a weeks-long range resistance this week but it looks like the bears stepped in around the 1.5950 area.

euraud is now trading closer to the broken range resistance as well as the 38.2% Fibonacci retracement of last week’s upswing.

Will euraud complete a break-and-retest pattern?

I’m not seeing top-tier reports scheduled in the next trading sessions so risk sentiment will likely dictate EUR/AUD’s price direction for another day.

If traders follow up on the risk-taking that started from yesterday’s late U.S. session trading, then we could see more AUD strength that could drag euraud to the 1.5750 area near the 100 and 200 SMAs.

If markets focus on the upcoming FOMC statement, though, or if yesterday’s risk-taking sees a reversal today, then euraud could bounce from its current levels and return to its intraweek highs.