The Aussie got a bit of a boost thanks to the rally in China’s property sector stocks today.
Can it go for more gains against the euro?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Chinese property sector shares rose thanks to news that Country Garden Holdings received approval to extend payments for an onshore private bond
New Zealand overseas trade index rebounded by 0.4% q/q in Q2 vs. estimated flat reading and earlier 1.5% slump
Australia’s MI inflation gauge slowed from 0.8% m/m to 0.2% in August to reflect weakening inflationary pressures
Australia’s ANZ job advertisements accelerated from an upgraded 0.7% m/m increase in July to 1.9% in August, hinting at stronger hiring prospects down the line
Australia’s company operating profits slumped 13.1% q/q in Q2 vs. estimated 0.1% dip and earlier 1.3% gain
German trade surplus narrowed from 18.7 billion EUR to 15.9 billion EUR vs. 17.6 billion EUR forecast in July, as exports fell 0.9% m/m while imports rose 1.4% m/m
Swiss GDP showed that economic activity was flat in Q2 vs. estimated 0.1% q/q growth figure and earlier 0.3% expansion
Price Action News
This trading week seems to be off to a bit of a lazy start for most major currencies, with the exception of the Australian dollar.
Aussie bulls seem to have woken up on the right side of the bed, thanks to weekend news that China’s Country Garden Holdings received approval to extend payments for an onshore private bond, dodging default for the time being.
This was enough to boost Chinese property shares listed on the Hong Kong stock exchange, as well as other Asian market indices.
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. and Canadian markets closed on Labor Day holiday
ECB head Lagarde’s testimony at 1:30 pm GMT
U.K. BRC retail sales monitor at 11:00 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
EUR/AUD: 15-min
This forex pair was quick to break below its previous week lows, as the Australian dollar got a strong boost from the rally in Chinese property shares.
To top it off, mid-tier data from the eurozone has once again been mostly downbeat, as the German trade balance reflected slower export activity while Spain’s jobs data fell short of estimates.
We’ve got ECB head Lagarde‘s speech coming up later today, though, so EUR/AUD might be in for an extra dose of volatility.
In that case, the pair could have a shot at pulling back up to nearby resistance levels marked by the Fib retracement tool.
In particular, the 38.2% level is looking like a nice near-term resistance zone close to the 1.6700 handle. A larger correction could reach the 61.8% Fib that lines up with another area of interest and a short-term falling trend line.
If any of these levels hold as a ceiling, EUR/AUD could resume the slump back to the swing low, which happens to coincide with S1 (1.6640) or even create fresh intraday lows at S2 (1.6590).
