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 -1.52 billion CAD, down from 3.97 billion CAD the previous month. The CAD/JPY pair fell from 104.876 to 103.293. The decline was driven by 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, Germany's Manufacturing New Orders at 15:00, France'sIndustrial Production and the Manufacturing Production Index at 15:45, the UK Construction PMI at 17:30, the Canadian Employment Report and the US Employment Report at 21:30, remarks by Fed Chair Powell at 24:25, remarks by Fed Governor Barr at 25:00, and remarks by Fed Governor Waller at 25:45.We will be watching for upside potential in the Euro/Australian Dollar pair, which has surged sharply.