We have an interesting situation on the EUR/AUD pair. Looking at the daily chart you can see that the price after a period of dynamic growth reached the peak level of September and October last year. A wider lay-out, covering the whole of last year shows that the exchange rate respected the edges of a growth channel. It seems that the situation between China and the USA may be decisive for the fate of EUR/AUD. There are some chances for at least a temporary easing of the tense relations, which should help to strengthen the Australian dollar.
At night, however, there was a serious slump in Asian markets, which also translated into the currencies of the Antipodes. The reasons for the sudden price surge include lower liquidity at the beginning of the year and the lack of trade in Japan. In addition, price spikes are triggered by reports from Apple, which has lowered its sales forecasts due to the worsening economic situation in China. It is possible that one of the reasons was also China’s rather harsh statements about the island of Taiwan, where even the use of force to unite the Chinese people was not ruled out. The situation is slowly normalizing and if you look, for example, through the prism of the EUR/AUD linear chart, the price is still under the upper edge of the channel and close to the previous peaks.