NAB morning report reads: "As long as the ECB supports the ESM, it might meet market expectations. The action will need to be definitive at this stage, with much priced into risk markets. They may also have the option to further reduce rates and/or offer more LTROs. If they do everything, there is the possibility of a risk rally, although, with reduced rates, we are likely to see EUR continue to underperform. On the flip side, it would help sustain the AUD at recent highs."
NAB cloncludes by stating that "if the announcements is not followed by actions, or any promises are not definitive, it is likely the markets are underwhelmed yet again and AUD tests lower."