Should we focus on the upside potential of the surging EUR/AUD pair?

Should we focus on the upside potential of the surging EUR/AUD pair?

04.04.2025

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen after Canada’s February international merchandise trade figures, released yesterday, came in at a deficit of C$1.52 billion, down from the previous month’s C$3.97 billion. The CAD/JPY pair fell from 104.876 to 103.293. The decline occurred as the pair encountered resistance at the 75-period moving average on the hourly chart.On the 4-hour chart, the candlesticks have fallen to the -2σ level of the Bollinger Bands, and on the daily chart, the price has shifted from above the 20-day moving average to below it.

European currencies rose, with the euro gaining against the Australian dollar after yesterday’s release of the Eurozone’s February Producer Price Index (PPI) showed a year-over-year increase of 3.0%, up from 1.8% the previous month.The EUR/AUD pair rose from 1.7203 to 1.7528. The rally followed the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair has surged to the +3σ level of the Bollinger Bands. As it has continued to hit new highs during today’s Asian session, we will be watching for further gains in the euro during European trading hours.

Today’s economic indicators include Japan’s Household Expenditure Survey at 8:30 a.m., Germany’s Manufacturing New Orders at 3:00 p.m., France’sIndustrial Production, and the French Manufacturing Production Index at 3:45 PM; the UK Construction PMI at 5:30 PM; the Canadian and U.S. Employment Reports at 9:30 PM; remarks by Fed Chair Powell at 12:25 AM; remarks by Fed Governor Barr at 1:00 AM; and remarks by Fed Governor Waller at 1:45 AM.We should keep an eye on the upside potential of the Euro/AUD pair, which has surged.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed