This article has been translated from English to Gen Z Slang.
Yo fam, this week our currency squad was all about Australia's CPI Report (May 2025) for some A1 setups. 🔥
Outta the four chats this week, two really hit different, sparking fundie & technical vibes ripe for a trade & risk management glow-up. 🚀
Watchlists are basically price vibes & strategy convos supported by both fundie & technical deets. It's crucial to slide towards crafting a high-key trade idea before getting your risk & trade management grind on. 👀
If you wanna peep our “Watchlist” picks right when they drop during the week, slide yourself a sub on BabyPips Premium. 💌
Check the tea on these chats to see what went down! 😏
EUR/AUD: Wednesday – June 25, 2025
On Wednesday, our squad was all eyes on Australia’s CPI report for May 2025, sussing out the Aussie dollar vibes. 💸
EUR/AUD 1-hour Forex Chart by TradingView
As per our Event Guide, everyone was expecting headline inflation to stay solid at 2.4% year-on-year, with traders keeping their vibes tuned for them sticky inflation deets. 👀
With all that hype, here’s what we were on:
The “Aussie Advance” Scenario:
If the stats hit better than expected, we thought the RBA would stay savage, busting rate cut dreams for later '25.
We looked at AUD/CHF for some long plays if the positive vibes were shiny, especially since the Swiss bank just went soft with their zero rates. 😜
In a mood swing towards safe territory, AUD/NZD was the flex given the different central chants with the RBNZ throwing six rate cut parties, while the RBA stays chill. 😎
The “Aussie Avalanche” Scenario:
If inflation fell asleep on us, showing basic vibes, the Aussie could take a hit and boost RBA’s chill game. 😬
In that chat, we peeped EUR/AUD for potential long plays if the risk was on, especially 'cause the ECB's thinking about slowing down the rate cut music. 🎶
If the vibes turned off, AUD/JPY shorts seemed fire given Japan's bank whispering rate hikes, tilting the safe-haven flow JPY style. 💨
What Actually Went Down
Australia’s May CPI report flopped big time. Headline inflation hit a lowkey 2.1% y/y, missing the 2.4% buzz, marking the chillest surprise in months. 📉
Vibes from the CPI report were all about:
- Headline CPI hit 2.1% y/y against a 2.4% hype, flopping hard since early 2025.
- Core price forces cooled across the board, with core stats dragging low. 🥶
- The TD-MI Inflation Meter was already tired, showing the chillest drop in 33 months pre-release.
- Service costs eased hella, previewed in the chill PMI reports.
Market Vibes
This switch-up had our AUD bear vibes on lock, especially with risk feeling better after news of the Israel-Iran chill-out. EUR/AUD became our star. 🌟
EUR/AUD 1-Hour Forex Chart by TradingView
Peep the EUR/AUD map, showing the pair holding near that 1.7850 level with its squad of rising moving averages before the deets dropped. 🗺️
Once those blah CPI stats hit the scene, EUR/AUD shot up, cruising past the 38.2% Fib to R1 vibes near 1.7950. 💥
The euro’s glow-up thrived from ECB talk of playful rate pauses versus RBA tweaks, with mood-boosting Middle East peace pushing the EUR/AUD long game into ascendance. ✨
EUR/AUD mostly kept its post-CPI glow, chilling above the hype price into weekly peaks as the RBA easing crowd settled in.
The Summary
So, how'd it flow? 🤔
Our fundie vibes perfectly caught the AUD blues on weak inflation numbers, playing out as we saw with the 2.1% flop against 2.4%. Our tech vibes hit potential supports and breakout scenes on the EUR/AUD chart. 🎯
Traders grabbing longs near the juicy zone post-weak CPI could ride smooth waves higher all week. The plan was simple with solid catalysts and tech-ready feels. 🎢
All in all, we think this convo was “hella” on the positive side, with both fundie and tech beats vibing in sync. The Aussie CPI flop was an ace dovish RBA spark, while risk-on waves loved the EUR/AUD long scene over other AUD bearish spots. 🌊
The pair chilled above the hype for most of the week, locking high peaks, meaning traders didn’t stress risk-jams to lock good gains. 🚀
