22 Aug 2013
Flash: EUR/AUD could retrace as EUR struggles surface – Westpac
FXstreet.com (New York) - Global FX Strategist Sean Callow at Westpac analyzes the multi-week outlook of the EUR/AUD.
Key quotes
“The EUR momentum should be maintained near-term given better Eurozone data and the ECB‟s current policy pause. However, after testing the EUR/AUD 1.5000 area, we expect the euro’s struggles to return, with scope for 1.43 multi-week.”
“The AUD should be supported by reduced fears over Chinese growth, a pause in RBA rate cutting and improvement in key commodity prices. EUR should struggle once data momentum falters into Q4 and the ECB easing debate reignites. In contrast with the more mixed fundamental view, the technical view on EUR/AUD remains positive, with 1.4680/1.4700 likely to attract demand.”
Key quotes
“The EUR momentum should be maintained near-term given better Eurozone data and the ECB‟s current policy pause. However, after testing the EUR/AUD 1.5000 area, we expect the euro’s struggles to return, with scope for 1.43 multi-week.”
“The AUD should be supported by reduced fears over Chinese growth, a pause in RBA rate cutting and improvement in key commodity prices. EUR should struggle once data momentum falters into Q4 and the ECB easing debate reignites. In contrast with the more mixed fundamental view, the technical view on EUR/AUD remains positive, with 1.4680/1.4700 likely to attract demand.”