Euro in choppy waters as aussie climbs on China growth fears

<p>A choppy day for the euro yesterday after it couldn’t find the direction in which it wanted to go. The currency spent most of yesterday […]</p>

A choppy day for the euro yesterday after it couldn’t find the direction in which it wanted to go. The currency spent most of yesterday being offered and then Draghi spooked the market with comments that the ECB is ready to act. This sent EUR/USD to 1.3750 lows, following comments that there is no deflation risk in the eurozone. This sent EUR/USD back up to where the day started, at around 1.3740, so some big swings on very little new information shows how vulnerable the euro is at the moment.

The Aussie was the best performer overnight, up around 40 points so far, followed by NZD which is up around 30 points. This seems to be due to increasing worries about the slowdown of China growth, with the more likely outcome of more stimulus to be added. The RBA also helped AUD get a bit of an extra edge after upbeat comments about the economy rebalancing and no housing risks, but mainly there was no mention of wanting the AUD lower even though it has helped the economy so far.

US durable goods orders are to be released today and that is expected to come in weaker than before at 0.3%.

Today’s data events come in the form of the IFO survey from Germany, along with UK inflation data as the US session gives us the latest consumer confidence reading.



Supports 1.3800 1.3740 1.3700 | Resistance 1.3835 1.3850 1.3880



Supports 102.00 101.60 101.30 | Resistance 102.45 102.70 103.00



Supports 1.6505 1.6485 1.6440 | Resistance 1.6575 1.6600 1.6550


Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.