- Euro after spiking higher against the Australian Dollar towards the 1.5080 level found resistance.
- There is a bearish trend line formed on the hourly chart of the EURAUD pair, which is acting as a downside move catalyst.
- German Producer Price Index released by the Statistisches Bundesamt Deutschland came in at -0.5% in Feb 2016, which was lower as the market was expecting -0.2%.
- Euro Area quarterly Labour Cost, released by Eurostat posted a rise of 1.3% in Q4 2016.
The Euro managed to pop higher against the Australian Dollar recently towards the 1.5080 resistance area where it found sellers. There is a bearish trend line formed on the hourly chart of the EURAUD pair, which acted as a resistance and pushed the pair down.
The pair is now below the 100, 50 and 200 simple moving averages on the hourly chart, calling for more losses in the short term.
On the upside, the highlighted trend line and 100 MA can be seen as a resistance area.
Euro Area Labour cost
Today, the Euro Area quarterly Labour Cost, which shows the short-term development of the total hourly costs incurred by the employers of maintaining their employees was released by Eurostat. The outcome was above the last reading, as there was an increase of 1.3% in Q4 2016.
The report added “Hourly labour costs rose by 1.3% in the euro area (EA19) and by 1.9% in the EU28 in the fourth quarter of 2015, compared with the same quarter of the previous year. In the third quarter of 2015, hourly labour costs increased by 1.1% and 1.9% respectively. These figures are published by Eurostat, the statistical office of the European Union”.
Overall, the EURAUD pair remains at a risk of more losses as long as it is below the trend line resistance area.