Overnight risk sentiment was stable with US stock futures trading broadly flat at the time of writing. This is mainly on the back of firm expectations of further improving US growth prospects and further stimulus measures in China. However, Greece-related uncertainty remains intact. While aid talks continue, Greek PM Tsipras reiterated anew that no more austerity is wanted and that they should not be forced into new bailout loans.
All of the above and well supported Fed rate expectations have been keeping EUR/USD under pressure of late. Additional room of diverging monetary policy expectations should keep any upside from the current levels limited.
In Australia, at 6.2% (cons. 6.3%, prev.6.2%) and at 1.1% (prev. 1.8%) February private sector credit and new home sales fell, each respectively. Given weak price developments and unstable external demand conditions as related to Asia it cannot be excluded that the RBA will turn more aggressive on monetary policy as soon as next week.
Accordingly we expect the AUD to stay a sell on rallies, against both the USD and NZD.
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