EUR/AUD has been quite volatile recently which lead the price below 1.60 price area where it is currently struggling with the lack of bearish pressure in the market. Today EUR Italian Retail Sales report was published with a better than expected result at 0.4% increase from the previous value of -0.5% which was expected to be at 0.3% and ECB President Draghi is going to speak today as well which is expected to be quite neutral in nature as of no strong development was encountered recently on the EUR economy. On the other hand, today AUD Westpac Consumer Sentiment report was published with a decrease to -0.6% from the previous value of 0.2% and RBA Governor Phillip Lowe failed to impress the market participants to be biased on the AUD side. Governor Lowe talked about the imbalance of growth in the states of the country whereas Queensland and Western Australia have seen a rapid growth in comparison to others. Employment measure and Business Conditions has been quite different as well and for this imbalance total development is not being measured as a whole. As of the current scenario, if ECB fails to impress the market with better developments in the future then certain correction is expected while AUD is expected to be slow with the gains as of the recent economic reports interprets. To sum up, certain correction is expected to persist in the market whereas any negative economic result on the EUR side is expected to help in the gains of AUD in the coming days.
Now let us look at the technical view. The price is currently residing below 1.60 with an impulsive daily close which did retest today recently and expected to push lower towards 1.5750 price area in the coming days. As the price remains below 1.6060 area with a daily close, the further bearish pressure is expected.
