EURAUD. Eurozone Refinancing Rate Decision (20 October 14:45 GMT)

Economies of Eurozone and Australia are under the pressure. The ECB leaders can’t solve their biggest issue – boost of CPI and debt crisis. Apart from that, there is a massive concern regarding the “Brexit” and EU-UK asset sharing, as EU leaders no longer want their assets to be traded on London exchange.

On the other hand, there are problems in the economy of Australia due to slowdown of Asian economy and unstable commodity prices which is one of the key aspect of Australian economy.

If the leaders of European Central Bank decide to cut either the deposit facility rate or the  interest rate it will have a negative impact on the European currency.

EURAUD chart:

There is a similar situation with EURUSD D1 on EURAUD D1 price chart – the downward trend also starts to accelerate. Both indicators of technical analysis “Parabolic SAR” and “Awesome Oscillator” prove it. But traders have to keep in mind that fundamental factors prevail on this asset and commodity prices have a vital role in pricing on EURAUD.

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EURJPY. Publication of Japanese Industrial Production report (October 17, 04:30 GMT)

Low inflation is the key problem of Eurozone at the moment. On the latest meeting of European Central Bank representatives it was decided to keep both deposit facility rate and interest rate unchanged (-0.40% and 0.00% respectively).

Head of ECB Mario Draghi said that there will be no additional measures of economy of stimulation at the moment and the asset buyback program will remain on the same level.

On the other hand, representatives of Bank of Japan are also playing a risky game by decreasing the rates regularly and having all sorts of interventions. Rate increase or decrease does not mean the strength of the national currencies, that’s rather a weakness.

If the numbers of Industrial Production report are higher than expected it will have a positive impact on Japanese Yen.

EURJPY chart:

There is still a flat rate movement on EURJPY D1 chart despite the fact that there are minor upward or downward trend movement. According to the indicator of technical analysis “CCI” the rate got back into the neutral area and further flat rate movement is expected now.

EURUSD. FOMC Meeting Minutes (October 12, 18:00 GMT)

Last Friday US labor market data was published and it was insignificantly lower than the forecast. Level of unemployment increased by 0.1% from 4.9% to 5.0% while theNonFarm result was 156,000 against forecasted 175,000.

Despite the fact that the level of unemployment remains significantly lower that 6% (optimal value) it keeps increasing (in June the level of unemployment was 4.7%) and market participants start to worry about the future of US labor market.

Now traders emphasize the FOMC Meeting Minutes report as most likely some information and vision regarding the future of US economy will be described there. If market participants won’t find the ways how to solve all the issues in US economy then there will be a high chance that the refinance rate will remain on the same level and that is why USD might be under pressure.

EURUSD chart

There is still a flat rate movement on EURUSD D1 chart and the rate is moving in the narrowing price range (highlighted with yellow on the price chart). According to the indicator of technical analysis “Awesome Oscillator” the possibility of downward rate movement prevail. Also, the factors of fundamental analysis point at the same scenario.