EUR/AUD rallies to test Friday’s highs

FXStreet (Guatemala) - EUR/AUD jumped from 1.5260’s to challenge last Friday’s highs at 1.5347. The cross has marked a high of 1.5344 so far and remains well bid full of energy still.

The move came on the release of Australia’s private capex disappointing at at -5.2% vs -1.3% expected. This data will be of considerable interest to the RBA and this shocker release has taken the markets attention. Meanwhile, in the Eurozone, inflation and credit data may serve to undercut EUR strength a little more in the next few days according to analysts at TD Securities as markets search for a stronger sense of direction ahead of the ECB policy meeting (march 6th). RSI (14) is reading well below overbought signals and the short term EMA’s are indicating a bullish bias as an extension from below 1.51’s short term bull trend and the daily bull trend from Novembers 1.4050 rally.