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: Eyes on Death Cross and $3,950 support

Gold sellers return early Friday, with eyes on $3,950, despite easing Fed rate hike bets. The US Dollar catches a fresh haven bid amid global risk aversion and Hormuz tensions. Gold awaits Death Cross confirmation as RSI returns to the bearish zone on the daily chart.

Bitcoin briefly hits $58K as short-term holder weakness deepens, macro conditions trigger liquidations

Bitcoin fell briefly toward the $58,000 level on Thursday as mounting macroeconomic uncertainty, weakening short-term investor conviction and widespread liquidations intensified selling pressure across crypto.

Asian stock markets plummet as Apple price hike raises inflation concerns, KOSPI dives over 8%

Asian equity markets on Friday are significantly down as price hikes announced by Apple Inc. due to memory chip shortages have prompted fears of high inflation globally and concerns on earning projections of various companies that rely on these sophisticated chips for their final products.

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.