What drove the EUR/AUD higher on January 20?

The primary driver was broad US Dollar slippage caused by trade-policy uncertainty and a shift toward policy-risk hedging.

What are the key technical levels for EUR/AUD today?

The pair faces resistance at 1.7467 and found intraday support at 1.7307, with 1.7400 acting as a psychological pivot.

How did US Treasury yields affect the forex market?

Despite yields rising (10Y ~4.27%), the impact was muted as volatility and hedging demand for currencies like CHF took precedence over simple rate spreads.

EUR/AUD Analysis: USD Slippage Drives High Beta Bid | FXPremiere

EUR/AUD climbs to 1.7401 as trade-policy uncertainty pressures the US Dollar, creating a high-beta bid despite rising US Treasury yields.

The EUR/AUD pair pushed higher during the January 20 session, closing at 1.7401 as a broad softening of the US Dollar offset rising nominal yields. While U.S. 10-year yields backed up toward 4.27%, the primary market driver shifted toward trade-policy uncertainty and a mounting policy-risk premium, sparking a tactical bid in high-beta and safe-haven assets alike.

Market Drivers: Policy Risk Overpowers Yield Spreads

The global forex landscape on January 20 was defined by a complex interaction between firming interest rates and aggressive risk hedging. Despite the 2-year U.S. Treasury yield holding firm near 3.946%, the Greenback struggled to find footing as investors sought protection against trade-related volatility.

The USD Slippage Narrative

Following the MLK Day holiday, U.S. cash markets reopened to a heavy equity tone. The DXY proxy traded a wide range between 98.0200 and 98.9000, eventually settling near 98.3300. This weakness allowed EUR/AUD to re-price higher, moving from an opening 1.7347 to an intraday peak of 1.7467. In this environment, the move was characterized as a USD-leg repricing first, with relative rate differentials acting only as a secondary filter.

EUR/AUD Technical Levels and Intraday Tape

Today’s price action established clear boundaries for the rest of the week. The pair found significant support at 1.7307 (today’s low) while meeting resistance at the 1.7467 level. The psychological handle at 1.7400 remains the critical pivot for near-term momentum.

Resistance: 1.7467 (Intraday High)
Pivot Level: 1.7392
Support: 1.7307 (Intraday Low)

Rates and Cross-Asset Transmission

While U.S. rates remained elevated, their impact was muted by a rush into defensive currencies like the Swiss Franc. Comparatively, German 10Y yields at 2.768% suggest that the EUR/AUD strength was less about European yield outperformance and more about the Australian Dollar’s sensitivity to equity weakness, which saw S&P 500 futures drop approximately 1.0%.

Looking Ahead: Economic Catalysts

Traders should monitor the upcoming sequence of U.S. data, which may clarify the Federal Reserve's trajectory and influence global risk appetite. Key releases include:

US Housing Starts & Building Permits: Wednesday, 13:30 London.
US Pending Home Sales: Wednesday, 15:00 London.
Trade Policy Headlines: Ongoing risk of gap openings at session handovers.

For further context on how these macro themes are impacting other major crosses, see our related analysis on EURAUD Market Analysis: Navigating 1.8244 Pivot or explore the broader impact of Trade Policy Uncertainty and Market Volatility.