EUR/AUD surged to its highest levels since January 4th on Tuesday. A week ago the RBA lowered interest rates for the first time in nearly three years and signaled another possible cut, making the Aussie a less appealing investment.
Australian Stocks Highest Since 2007
Meanwhile, the Australian stock market surged, with the S&P/ASX200 Index closing at 11 year highs, boosted by gains on Wall Street. Friday’s US-Mexico tariff agreement eased fears over global trade and investor mood shifted towards ‘risk on’.
Analysts now eye the G20 summit in Japan on the 28th and 29th of June. US President Donald Trump said on Monday that he will impose tariffs on at least $300bn worth of goods if he and China’s President Xi Jinping are unable to come to a trade deal at the summit.
EUR/AUD Key Levels
Looking at the daily chart above we can see that potential resistance lies overhead at the prior highs of 1.6358. To the downside we have rising trendline support currently at 1.6070.