Friday’s trade saw EUR/AUD within the range of 1.4350-1.4494. The pair closed at 1.4428, gaining 0.27% on a daily basis, while losing 0.30% for the whole week.
Fundamental view
Euro zone
German Factory Orders
German seasonally adjusted factory orders, an indicator gauging the change in the total value of new purchase orders placed for durable and non-durable goods, probably decreased 2.5% in August compared to a month ago, following a 4.6% increase in July. The annualized performance of the indicator showed a 4.9% increase in July. Factory orders are considered as a key indicator for analyzing the short-term trend in production in Germany. In case the gauge declined more than projected, this would cause a bearish impact on the euro. The official data is scheduled to be released at 6:00 GMT.
Euro zone Sentix Investor Confidence
Confidence among investors in the Euro zone was probably lower during the current month, with the corresponding index coming in at a reading of -12.1. In September it stood at -9.8. The index is based on results from the Sentix survey, one of the most prominent surveys, reflecting investors’ opinion in Germany. It encompasses 2 800 respondents, with 510 of them being institutional investors. Respondents present their expectations regarding ten different markets for a period of one and six months. Readings above zero indicate that respondents were predominantly optimistic, while readings below zero show pessimism. Lower than expected readings would have a bearish effect on the common currency. The official result is expected at 8:30 GMT.
Australia
Job Advertisements
At 0:30 GMT on Monday the Australia and New Zealand Banking Group (ANZ) will publish data regarding the number of job advertisements in Australia in September. It encompasses advertisements in the major metropolitan newspapers and on the internet sites. The corresponding index, based on a survey by ANZ, climbed 1.5% in August compared to July. This indicator is used for projecting growth in employment in Australia, as it reflects labor market conditions in the future. An increase in the number of jobs would have a limited bullish effect on the Aussie.
AIG Performance of Construction Index
At 22:30 GMT the Australian Industry Group (AIG) is expected to announce the results from its survey on short-term and intermediate-term conditions in the sector of construction during September. Surveyed companies answer questions associated with production, employment, prices, supplier deliveries, inventories and new orders. The seasonally adjusted Performance of Construction Index (PCI) for Australia came in at a reading of 55.0 in August. Values above the key level of 50.0 are indicative of expansion in activity. An improvement in the value of this indicator would provide a certain support to Australian dollar.
Technical view
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.4424. In case EUR/AUD manages to breach the first resistance level at 1.4498, it will probably continue up to test 1.4568. In case the second key resistance is broken, the pair will probably attempt to advance to 1.4642.
If EUR/AUD manages to breach the first key support at 1.4354, it will probably continue to slide and test 1.4280. With this second key support broken, the movement to the downside will probably continue to 1.4210.
The mid-Pivot levels for Monday are as follows: M1 – 1.4245, M2 – 1.4317, M3 – 1.4389, M4 – 1.4461, M5 – 1.4533, M6 – 1.4605.
In weekly terms, the central pivot point is at 1.4452. The three key resistance levels are as follows: R1 – 1.4568, R2 – 1.4707, R3 – 1.4823. The three key support levels are: S1 – 1.4313, S2 – 1.4197, S3 – 1.4058.
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