The EUR/USD price has shown a powerful upward movement due to uncertainty around planned tax reforms in the US going through and also thanks to strong macro statistics reported in the Eurozone. German GDP growth in the third quarter accelerated up to 0.8% which is 0.2% above the forecast. Germany is the largest economy not only in the Eurozone, but in the whole of Europe. At the same time, Italian GDP grew by 0.5% during the same period and the Eurozone’s economy expanded by 0.6%, in line with the forecast.
Speeches by the heads of the central banks of the US, Eurozone, Japan and the UK had limited impact on the course of trading today. The focus of the market tomorrow will be on the consumer price index report in the US that traditionally has a significant impact on the future decisions of the FOMC on monetary policy settings.
The aussie price has resumed growing. The weakening of the greenback was able to offset the worse than anticipated statistics from China where industrial production growth slowed to 6.2% which is 0.1% short of the predicted figure. Today, the impact on the course of AUD/USD trading will come from the Westpac report on consumer sentiment in Australia at 23:30 GMT. Another important event today worth paying attention to is the GDP data release from Japan for the third quarter.
The EUR/USD price started to grow after some consolidation above 1.1650. As a result, the quotes were able to pass through the resistance at 1.1730 and the upper limit of the descending channel. The next targets in case of further growth will be located at 1.1850 and 1.1925. The RSI on the 15-minute chart is in the overbought zone which points to a possible price rollback with potential target at 1.1700.
The pound is consolidating today despite the publication of the consumer price index that remained at 3.0% in October which is 0.1% below the forecast. Slower than expected inflation will restrain the Bank of England from raising interest rates, especially on the background of week macro data in the UK. In case of breaking through the support at 1.3050, the next targets will be at 1.2950 and 1.2840. Growth today is likely to be limited by the resistance at 1.3150.
The AUD/USD price has not been able to fix under the strong level of 0.7640 and the current upward impulse has broken through the upper limit of the local descending trend. This has become a basis for the bulls to push the price higher with potential goals at 0.7700 and 0.7740. The fall potential has reduced recently and it is restricted by the horizontal support line at 0.7600.