January 24, 2023 01:34 GMT
Mixed Outlook On Key Crosses, CPI In Focus
AUD/EUR is consolidating after recovering off lows seen late in December 2022. The pair has held above €0.64, however resistance has come in at the 100-Day EMA (€0.6484).
- The technical outlook looks mildly bearish with the cross still trading below its 100 and 200-day EMAs. The cross is holding above its 20-day and 50-day EMAs as the tide may be turning for bulls.
- Bulls look to target a break above the 100-day EMA at €0.6484, to target the 200-day EMA at €0.6531.
- Bears first target a break of 20-day EMA at €0.6421, opening up the Dec 2022 low at €0.6259.
AUD/JPY is around ~5.5% higher from December 2022 lows, with the 200-day EMA providing resistance in recent dealing.
- The technical picture looks mixed, the cross is above key EMAs however is struggling to break clear of its 200-day EMA.
- Bulls first target a break of round number resistance at ¥92, to open the high from December 2022 at ¥93.35.
- Bears look to the 50-day EMA at ¥91.15, then the 20-Day EMA at ¥90.38.
Quarterly and Monthly CPI data from Australia tomorrow provides the next risk event. The Bloomberg survey looks for a Q4 headline print of 1.6%, with the YoY expected at 7.6%.
Fig 1: AUD/EUR Daily Spot, EMAs
Fig 2: AUD/JPY Daily Spot, EMAs
Source: Market News International (MNI)/Bloomberg
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