The euro rallied against the Aussie yesterday following reports of an improvement in the German ifo business climate index for February. The Australian construction data for the December 2022 quarter also missed estimates. Overall, the EUR/AUD pair rallied from a low of 1.5506 to a high of 1.5620 in the past 24 hours.
According to the Australian Bureau of Statistics, the wage price index inched up 0.80% q-o-q in the December 2022 quarter following a 1.10% rise in the previous quarter but missed forecasts for a 1% growth.
On a y-o-y basis, the wage price index surged 3.30% in the December 2022 quarter. Public sector wages increased 0.70% q-o-q in the fourth quarter. Likewise, the private sector grew by 0.80% in the same period.
In a separate news release, the Australian Bureau of Statistics stated that construction work fell by 0.40% q-o-q in the December 2022 quarter to A$55.272 billion, following a 3.70% rise in the previous quarter and missing forecasts of 1.60% growth.
The building work completed declined by 1.60% q-o-q to A$30.58 billion. The decrease was led by a drop in non-residential building work done, which fell by 5.10% in the December 2022 quarter. Also, new residential building work rose by 0.90% q-o-q in the December 2022 quarter.
Also, the engineering work done grew by 1% q-o-q to A$24.69 billion.
According to the data published by German statistical agency Destatis, the country’s final consumer price index rose by 1% m-o-m in January following a decline of 0.80% in the prior month. The preliminary estimates had pegged consumer price inflation at 1%. Economists did not anticipate any change in the preliminary estimates.
On a y-o-y basis, the German consumer price index surged 8.70% in January.
Energy products recorded a jump of 23.10% y-o-y in January, despite the relief measures. Specifically, household energy prices surged by 36.50%. While the price of natural gas skyrocketed by 51.70%, district heating reported a growth of 26%. Food prices rose by 20.20% y-o-y in January.
Devoid of energy prices, the German inflation was 7.20% y-o-y in January 2023. Notably, the prices of goods and services grew by 12.70% and 4.50%, respectively.
According to the data published by the German ifo Institute, the country’s business climate index inched up to 91.10 in February from 90.20 in January. The reported figure was in line with economists’ estimates.
The better-than-anticipated Eurozone economic data is expected to keep the EUR/AUD pair slightly bullish in the next few trading sessions.
The historical price chart indicates that the EUR/AUD pair is rising after consolidating at 1.5380 levels. The next resistance is anticipated only near 1.5740. Additionally, the currency pair is trading above its 50-day moving average while the stochastic indicator is in the bullish zone. Therefore, we anticipate the EUR/AUD pair to remain in an uptrend in the days ahead.
Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.
