The EURAUD has seen an early-October rally reverse with the pair back at support levels. This will be a key few days for the pair with consumer confidence and employment data coming up for the Aussie economy.
Wednesday’s consumer confidence figure came in at 93.8 last month and economists will be looking for a higher figure but the key release will be Thursday’s employment change. Employment in Australia is expected to drop by -35k jobs after a strong 111k print in August. The employment rate is also expected to grow by 3 basis points to 7.1%. Any revision higher could lead to strength in the Aussie currency.
The Reserve Bank of Australia was a keen watcher of the employment data earlier in the year, as an indicator for setting interest rate policy. With traders expecting further interest rate cuts, a stronger employment read would provide bullish steam.
The Euro still carries uncertainty from Brexit despite the hopes for an extension of talks into November. The history of the talks has always been acrimonious so the hopes of an agreement are maybe not as certain as traders assume.
EURAUD Technical Outlook
The EURAUD managed to rally from the support around 1.6320 in early-October but the rally has failed and the next path could be a drop to the 1.6150 mark if the coming Aussie data is good. Stop losses for a short could be placed around 1.6400.