Today, there are a few FX option expiries worth noting. For EUR/USD, the main levels to watch are 1.1400 and 1.1475-90. The pair is under pressure from developments in the US-EU trade deal and a strengthening dollar. The expiry at 1.1400 might help stabilize price movements as traders react to recent trends. This is happening amidst month-end flows and significant US data, with tomorrow’s focus on non-farm payrolls.

AUD/USD Expiry

There is also an expiry for AUD/USD at 0.6465. This level isn’t linked to any technical support, but the pair is finding backing from its 100-day moving average at 0.6426. For more insights and details on these figures, additional information is available online. Looking back to 2018, EUR/USD faced levels around 1.1400, largely affected by US-EU trade disputes. Today, the scenario is different, with the pair trading near 1.0950 as the market reacts to different central bank policies. This shift shows how key themes can change over time. The European Central Bank is taking a cautious approach on rates, especially after Eurozone inflation hit 1.8%, which is just below the target. Meanwhile, the US Federal Reserve is being careful, with Core PCE data remaining stubbornly at 2.7%, above their target. This gap in policies supports the dollar, keeping the euro below the crucial 1.1000 level. For derivative traders, large option expiries around the 1.0900 strike are likely to act as a short-term price floor. Today is also the end of the month, so portfolio rebalancing could lead to some fluctuations in price. These shifts, alongside the upcoming US PCE data, are the main focus before tomorrow’s non-farm payroll report.

Echoes of the Past in AUD/USD

We can also see memories of the past in AUD/USD, which was once around the mid-0.6400s. Now, as the pair approaches 0.6800, the discussion has moved from simple technical levels to the health of the Chinese economy. The Australian dollar’s value is closely linked to demand for industrial commodities. Recent industrial production data from China showed a slight rebound, providing some support for the Aussie. However, this is countered by declining iron ore prices, which have fallen from over $110 to approximately $102 per tonne in July. This makes the currency sensitive to changes in global risk sentiment, making the upcoming global manufacturing PMI data crucial for future direction. Create your live VT Markets account and start trading now.

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