Forex traders will start the new trading week with a series of economic reports out of Eurozone member countries. After German retail sales came in stronger then expected, and Spanish data showed the absence of inflationary pressures as the economy expanded 2.0% annualized in the second-quarter, the EURAUD remained above support as bulls refused to give in to bears. More inflation data will be reported during the trading session, on top of unemployment data. How will this impact price action in the this currency pair? Today’s fundamental analysis will take a look in both directions.

Data released this morning out of Australia showed tame inflation and lower than expected private sector credit data. The main focus was on Chinese PMI data with an upward surprise in the manufacturing sector. This lifted the mood in financial markets and boosted the Australian Dollar. Is this just a short-term positive development out of China or is more to come? How will this impact the EURAUD moving forward? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per months in profits!