EUR/AUD rallied 120 pips after Australia’s disappointing CPI. Continue to buy EUR/AUD?
Aussie dollar sold off after their CPI underperformed. With the ECB meeting coming up tomorrow, there could potentially be a breakout from the resistance at 1.5230.
- QoQ CPI printed at 0.6% vs the forecasted 0.8%. The Trim Mean CPI came in 0.4% vs the expected 0.5%.
- There were sold-offs in the Aussie against the other major currencies.
- EUR/AUD is near the resistance at 1.5230. We expect the resistance to hold for now, but a hawkish expectation on the upcoming ECB meeting may push the price beyond.
Fullerton Markets Research Team
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