We have seen a breakout through the 1.6500 (0.6060) area in the Euro (EUR), Australian Dollar (AUD) pair Monday, the Euro rallying to 1.6600 (0.6025) in morning trade, the Euro clocking a key triple top level. Today’s Australian CPI y/y releases tomorrow and is predicted to come in above December’s 3.4%. This will concern the RBA as they target the 2-3% inflation band but may not be enough to warrant the central bank hiking further, it may just imply they push back rate cuts. Recent ECB speak suggests they are not about to cut any time soon. Watch for a retrace back around the 1.6550 (0.6040) area.
Current Level: 1.6597
Resistance: 1.6620
Support: 1.6475
Last Weeks Range: 1.6450- 1.6537