Impact of Australian CPI on EUR/AUD Trade Directional Bias
The upcoming Australian Consumer Price Index (CPI) release, forecasted at 2.6% year-over-year, could significantly influence the EUR/AUD trade directional bias. Here's how:
1. CPI Impact on AUD
Higher CPI: If the actual CPI figure exceeds 2.6%, it might reduce expectations for further interest rate cuts by the Reserve Bank of Australia (RBA). This could strengthen the AUD, potentially weakening EUR/AUD.
Lower CPI: Conversely, if CPI is below expectations, it might increase the likelihood of RBA rate cuts, which could weaken AUD and support EUR/AUD.
2. Trade Directional Bias for EUR/AUD
Bullish Scenario: If CPI is lower than expected or shows signs of easing inflation, EUR/AUD might rise as AUD weakens.
Bearish Scenario: If CPI is higher than expected, indicating stronger inflation, EUR/AUD could decline as AUD strengthens.
Heads of RBA and ECB
RBA Head: The head of the Reserve Bank of Australia is Michele Bullock.
ECB Head: The head of the European Central Bank is Christine Lagarde.
Summary
The CPI release will be crucial for determining the short-term direction of EUR/AUD. I Will monitor the actual CPI figure closely and adjust my strategies based on whether it aligns with or diverges from market expectations and sentiment .
DO your own research please.
The upcoming Australian Consumer Price Index (CPI) release, forecasted at 2.6% year-over-year, could significantly influence the EUR/AUD trade directional bias. Here's how:
1. CPI Impact on AUD
Higher CPI: If the actual CPI figure exceeds 2.6%, it might reduce expectations for further interest rate cuts by the Reserve Bank of Australia (RBA). This could strengthen the AUD, potentially weakening EUR/AUD.
Lower CPI: Conversely, if CPI is below expectations, it might increase the likelihood of RBA rate cuts, which could weaken AUD and support EUR/AUD.
2. Trade Directional Bias for EUR/AUD
Bullish Scenario: If CPI is lower than expected or shows signs of easing inflation, EUR/AUD might rise as AUD weakens.
Bearish Scenario: If CPI is higher than expected, indicating stronger inflation, EUR/AUD could decline as AUD strengthens.
Heads of RBA and ECB
RBA Head: The head of the Reserve Bank of Australia is Michele Bullock.
ECB Head: The head of the European Central Bank is Christine Lagarde.
Summary
The CPI release will be crucial for determining the short-term direction of EUR/AUD. I Will monitor the actual CPI figure closely and adjust my strategies based on whether it aligns with or diverges from market expectations and sentiment .
DO your own research please.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.