EURAUD: Euro Soars Despite Higher Aussie Employment Numbers
EURAUD soared 1% on the day despite a better-than expected employment release from the Australian economy. The country saw a loss of -29.5k jobs for September, which was better than the -35k loss expected. The unemployment rate was also lower at 6.9% with analysts expecting a 7.1% number.
Although the numbers were better it was obviously not enough to prevent an expected rate cut from the Reserve Bank of Australia in November. The central bank’s focus has been on jobs since early in the year. RBA Governor Lowe had said that 0.25% would likely be the floor for rates, but the bank may have no option but to move.
Today sees the crunch two-day EU summit which includes negotiations over Brexit. U.K. Prime Minister had said tomorrow was the last date for an agreement or the U.K. would walk away from talks. Some are suggesting that a deal will be announced in principle, with the legal text to be completed later but the threat of a No Deal Brexit still looms over the euro.
Britain’s chief Brexit negotiator, David Frost, has reportedly told Johnson that a deal over security and fisheries is still possible over the next two weeks, but the Prime Minister said he would wait for the outcome of the summit before “before setting out the U.K.’s next steps”.
EURAUD Technical Outlook
EURAUD soared higher from support at the 50-day moving average and will now attempt to tackle resistance at 1.6560 level. Going long on a daily close would need a stop loss at 50% of the candle roughly, so 1.64500. The Investing Cube team is currently available to assist with risk/reward and trade entry through our Forex Trading Course or one-to-one coaching.