EUR/AUD has been quite impulsive with the bullish gains recently which led the price to reside above 1.5750 area with a daily close. Recent decrease in Employment Change in Australia subdued the growth of the aussie against EUR which led to certain weakness in the pair.
Today, the eurozone's M3 Money Supply report was published with an increase to 4.0% which was expected to be unchanged at 3.8% and Private Loans remained unchanged at 2.9% which was expected to increase to 3.0%. Though the economic report revealed mixed readings, it managed to gain certain momentum in the process over AUD today.
On the other hand, the economic calendar lacks macroeconomic data or events from Australia which could inject volatility in the market this week. Next week, Cash Rate report is due in Australia which is expected to be unchanged at 1.50%. Moreover, RBA Rate Statement will be announced on the same day which is expected to clear up the central bank's plans on monetary policy. Till now, the Reserve Bank of Australia has not dropped a hint about the nearest rate hike. Global investors assume the RBA may act hawkish in the short term.
As for the current scenario, EUR is expected to gain further momentum over AUD ahead of the RBA policy decision which will be announced next week. Till now, EUR is the leading currency in the pair. Amid expectations of a series of the eurozone's economic reports throughout the week, EUR is expected to extend strength.
Now let us look at the technical view. The price is currently residing above 1.5750 area with a daily close which may correct itself along the way before pushing higher towards 1.60 and later towards 1.62 area in the future. Though the price is currently residing way above the dynamic level of 20 EMA, a pullback and correction is expected in the coming days. As the price remains above 1.5750 area with a daily close, the bullish bias is expected to continue further.
