EURAUD: Momentum with the euro for now - Westpac

The Australian dollar has trended lower against the euro in recent months and as is often the case, AUD has fallen more than EUR against a resurgent US dollar, points out Sean Callow, Research Analyst at Westpac.

Key Quotes

“AUD has also lost some yield support as Australia’s weak inflation pulse has caused markets to price in less risk of RBA tightening next year.”

“But the ECB’s loose monetary stance should help limit EUR gains/ AUD losses to the region of AUD/EUR 0.6350/75 or EUR/AUD 1.5700/50 into year-end. The strength of Australia’s job market and a potentially sharp rebound in Q3 GDP (6 Dec) could also help the Aussie on crosses.”

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.