Forex: EUR/AUD above 1.2550 after EMU trade balance

FXstreet.com (Barcelona) - The EUR/AUD made a 100-pip jump to 1.2550 high on China’s disappointing GDP and industrial production figures which put pressure on a commodity currency such as the Aussie. After a profit taking move to 1.2513, the cross is back at its highs and looking for an extension on the publication of EMU trade balance data. The seasonally adjusted trade surplus widened from €9.0B to €12B in February, beating the €9.9B consensus, while the non-seasonally adjusted figure moved from €-4.7B (revised from €-3.9B) to €10.4B, coming higher than the €3.0B consensus.

China GDP data eased from 7.9% to 7.7% (consensus of 8.0%) in Q1 (YoY), while QoQ data came in at 1.6% (consensus of 1.9%). Also, Chinese urban investment (down from 21.2% to 20.9% vs 21.3% consensus) and industrial production (down from 9.9% to 8.9% vs 10% consensus) in March didn’t help the mood, unlike China retail sales that rose from 12.3% to 12.6%, against expectations of 12.5%.

In Australia, housing finance rose by +2% in February, above consensus of 1.6% and increased across the existing and new property sectors. Investment loans also increased for two consecutive months, this time by 1.8%.

Mataf.net analysts point to resistance at 1.2550, 1.2580 and 1.2620. On the downside, supports might be found at 1.2490, 1.2450 and 1.2385.