EUR/AUD clocks 3-week high

EUR/AUD clocked a three-week high of 1.4946 this Thursday morning in Asia after the Aussie trade surplus narrowed more than expected and China Caixin services PMI missed estimates. 

Eyes descending trend line hurdle

The cross looks set to test 1.4965 - which is the resistance offered by the trend line sloping downwards from the high of June 1 high and July 7 high. 

Aussie trade surplus narrowed to AUD 856 million in July vs. expected print of AUD 1800 million. China Caixin services PMI came-in at 51.5 in July, missing the estimate of 51.9. 

The offered tone around the Aussie gathered pace following the data release. The Australia 10-year yield fell to one-month low of 2.662% and was last seen hovering around 2.68%; down 3.3 basis points [bps] on the day. 

The EUR side of the story looks solid as the popular backing for the Eurozone is at its highest level since 2004. 

EUR/AUD Technical Levels

The pair was last seen trading around 1.4925 levels. A break above 1.4965 [trend line hurdle] would open up upside towards 1.5037 [July 11 high] and 1.5075 [July 7 high]. On the downside, breakdown of support at 1.49 [psychological level] could yield a pullback to 1.4833 [1-hour 50-MA] and 1.48 [zero levels].