Will the euro's ability to rebound against the Oceania currencies be a key focus?

Will the euro's ability to rebound against the Oceania currencies be a key focus?

14.04.2023

In the previous day’s U.S. currency trading, the U.S. dollar became the weakest currency following the release of the U.S. March Producer Price Index (PPI) during U.S. trading hours, which showed declines in both the headline and core indices from the previous month. The USD/JPY pair fell from 133.403 to 132.029, marking its second consecutive daily decline.From a technical perspective, USD/JPY has pulled back after encountering resistance at the 200-day EMA on the daily chart and is now moving toward the lower boundary of the uptrend line on the 4-hour chart; therefore, caution is warranted regarding further declines during U.S. trading hours.

European currencies fell against the Oceania currencies after Germany’s March consumer price index was released, showing a year-on-year rate of 7.4%, unchanged from the previous month.The EUR/AUD pair fell by approximately 180 pips from 1.6446 to 1.6264. This marked a pullback following the pair’s break of last year’s high. However, since the EUR/AUD has not yet touched the 70 level on the weekly RSI and still has room to move, we will be watching price action during European trading hours.

Today, at 3:00 PM, Germany’s Wholesale Price Index; at 3:30 PM, Switzerland’s Producer Import Prices; at 3:45 PM, France’s Consumer Price Index; at 9:30 PM, Canada’s Manufacturing Sales, the U.S. Import Price Index, and U.S. Retail Sales; at 9:45 PM, remarks by U.S. Federal Reserve Governor Waller; at 10:00 PM, Canada’s Existing Home Sales;at 10:15 PM, U.S. Industrial Production; at 11:00 PM, U.S. Business Inventories and the University of Michigan Consumer Sentiment Index; at 12:30 AM, remarks by MPC member Tenreiro of the UK; and at 3:15 AM, remarks by Bundesbank President Nagel of Germany. We will be watching for the euro’s ability to rebound against the Oceania currencies.