AUDUSD BOUNCES BACK AS RBA ABANDONS QE

The euro jumped sharply after the latest jobs numbers from the Eurozone. According to Eurostat, the bloc’s unemployment rate declined to a record low of 7% in December. The numbers implied that the bloc’s labour market has done better than expected. The number of jobless people declined by 185k, taking the total number to 11.5 million. In Germany, the jobless rate declined to 5.1%. Additional data showed that the manufacturing PMI held relatively steady in the Eurozone. Therefore, analysts believe that the European Central Bank will not be as dovish as expected.

The Australian dollar rebounded today after the latest Reserve Bank of Australia (RBA) interest rate decision. The bank decided to leave the interest rate unchanged at 0.10%, where it has been since the pandemic started. The most notable change was that the RBA decided to end its quantitative easing policy. The final purchases will happen on February 10. Before the meeting, some analysts were expecting that the bank will continue with the asset purchases and provide hints that it will wind it down later this year.

American stocks retreated slightly as traders waited for earnings from some of the biggest companies in the country. The biggest one that will publish its results today is Alphabet, the parent company of Google and YouTube. Analysts expect that the company made sales of $72.23 billion and a profit of $19.91 billion. That will be a big jump considering that the company made $56 billion in the same period in 2020. Another big mover in the premarket was AT&T, which announced that it will slash its dividend after the spinoff of WarnerMedia. The payouts will cost the company $8 billion per year.

EURUSD

The EURUSD pair continued its comeback after the strong economic data from Europe. The pair is trading at 1.1272, which was higher than last week’s low of 1.1120. On the four-hour chart, the pair moved slightly above the 25-day moving average while the Relative Strength Index (RSI) has moved close to its overbought level. Therefore, the pair will likely keep rising as bulls target the yellow trendline.

GBPUSD

The GBPUSD pair made a bullish breakout after the strong UK home price index data. On the four-hour chart, the pair moved slightly above the upper side of the bearish flag pattern. It also rose slightly above the 50% Fibonacci retracement level. The MACD has made a bullish crossover pattern. Therefore, the pair will likely keep rising ahead of the BOE decision.

AUDUSD

The AUDUSD pair made a bullish comeback after the latest RBA decision. On the four-hour chart, the pair is slightly below the 23.5% Fibonacci retracement level. It also moved slightly above the 25-day moving average and is slightly below the 23.6% Fibonacci retracement level. Therefore, the pair will likely continue rising during the American session.