EUR/AUD Uptrend Likely to Continue Amid Forecast of Rising Eurozone Inflation

Eurozone – Final Consumer Price Index (CPI)

On Wednesday, at GMT 9:00 a.m., the Eurostat will release the year-over-year final CPI. It measures the changes in the price of goods and services bought by Eurozone consumers over the past month. However, this data is measured in an annualized format (y/y).

The final CPI (y/y) is the revised version of the flash estimates. It is released prior to the final version. Since the consumer price index is used by the European Central Bank to measure inflation in the Eurozone economy, binary options investors consider the final CPI to be the most important inflation data for the Eurozone economy.

Last month, the Eurozone’s final CPI reading came out at 1.9%.  This month, analysts are expecting it to come out a bit better, at 2.0%.

Australia – Unemployment Rate

On Thursday, at GMT 1:30 a.m., the Australian Bureau of Statistics will release the national unemployment rate. It measures the percentage of total work force which remained unemployed over the past month.

Binary options traders consider the unemployment rate to be one of the most important fundamental indicators of the Australian economy. It is because one of the main goals of the Reserve Bank of Australia is to keep the unemployment as low as possible. Although this is a lagging indicator, analyzing this data can help Forex traders predict future interest rates and inflation situation in the country.

Last month, the unemployment rate in Australia came out at 5.4%. This month, analysts are expecting it to remain unchanged at 5.4%.

EUR/AUD Forecast

Since June 4, the EUR/AUD remained bullish. Over the last six-week period, it climbed up by around 600 pips. However, after reaching near the historical pivot zone near the 1.5865 level, it found a strong resistance. Over the last two weeks, the EUR/AUD tested the 1.5865 level several times. But, so far, it has failed to close above it.

The Australian unemployment rate is set to remain unchanged at 5.4%. On the other hand, analysts are expecting the Eurozone final CPI figure to increase from 1.9% to 2.0% over the last month. We believe it would set a bullish fundamental outlook for the EUR/AUD this week. Therefore, if the EUR/AUD closes above the resistance near 1.5865, it would likely attract additional bullish momentum in the market.

Hence, Australian binary options traders should look out for trading opportunities above this major resistance level around 1.5865.

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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Asif Imtiaz

Asif worked as a prop trader for almost a decade, and later he managed trading operations for one of the largest foreign exchange strategy developers in Europe. Currently, he works as a trading consultant to several brokers and writes on various tech and financial topics. You can reach him at contact@asifimtiaz.com

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