Sell EUR/AUD for target of 1.4730 - Westpac

Sandeep Kanihama FXStreet Contributor

The analysis team at Westpac is recommending to sell EUR/AUD cross with the following parameters

“Entry: 100% at 1.5000, Stop: 1.5120, Target: 1.4730.”

Key Quotes

“Rationale:

ECB Pres. Draghi’s recent message was that the Eurozone still needs extraordinary support from monetary policy, including the use of the ECB’s forward guidance. This implies that current market expectations for a significant change in stance at the upcoming June may be misplaced.
EUR slipped on news reports that Greece might reject a bailout payment (with limited currency reaction to the subsequent denial) and the possibility of early Italian elections. Given recent positioning, this may show the weaker side of the market.
Media have become notably too downbeat on next week’s Australia Q1 GDP release. While it does look to have been a soft quarter, the potential risks of a recession are overdone.
The Aussie should also benefit from the calmer global mood in recently weak domestic equities. The majority of the hit to banks from the recent tax and to miners from should be priced in now. Iron ore should stabilise as rebar steel prices remain steady.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

GBP/USD bulls seem hesitant as Hormuz ship attack supports safe-haven USD

The GBP/USD pair sticks to a positive bias for the second straight day, albeit it remains below the previous day's swing high and trades just below the 1.3200 mark during the Asian session on Friday. Furthermore, the fundamental backdrop warrants caution before positioning for any meaningful recovery from November 2025 lows, around the 1.3140 region, touched on Wednesday.

EUR/USD softens toward 13‑month low near 1.1350 as rising US PCE inflation lifts US Dollar

The EUR/USD pair loses ground to around 1.1365 during the early Asian trading hours on Friday. The major remains near a 13-month low as market expectations for US interest rate hikes have risen. Traders brace for the release of the Michigan Consumer Sentiment Index report, which will be released later on Friday.

Gold returns to the red near $4,000 as Hormuz risks revive USD demand

Gold drops back to near $4,000 in Asia on Friday as geopolitical risks stemming from an attack on a cargo vessel in the Strait of Hormuz bolster the US Dollar. The commodity remains on track to record losses for the fourth consecutive week.

Three reasons to avoid buying Bitcoin at $60,000

Bitcoin hovers around $62,000 on Thursday, recovering from a brief dip below $60,000 the previous day. Although dip buyers anticipate a rebound in BTC from its psychological support zone, bearish signals from the upcoming Bitcoin options expiry, Exchange Traded Funds outflows, and large-wallet investor activity warn that selling could snowball in the coming period.

Micron prints perfect, and now the chart has to answer

Memory’s biggest name just delivered the cleanest quarter of its life, and the most interesting thing about it is that the stock isn’t sure what to do with it. Micron closed out fiscal Q3 with revenue of $41.5 billion, up 346% on the year, a fifth straight record. Gross margin came in at 84.9%, up from 39% the same quarter a year ago. Earnings landed at $25.11 against a Street sitting near $20.49.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.