2 Feb 2015
EUR/AUD: Market on the long side ahead of RBA
FXStreet (Guatemala) - EUR/AUD is currently trading at 1.4496 with a high of 1.4599 and a low of 1.4492.
EUR/AUD has been making tracks to the upside of late, having been as low as 139.64 in the final stages of last month, and moving up through the ranks to post recent 1.4669 before consolidating between here in a wide range, supported at 1.4480/00.
The euro has not been a buyers choice of late, with the recent and unprecedented action from the ECB , but vs the AUD, markets are taking into consideration the likely requirement for easing from the RBA as soon as the forthcoming meeting tonight. "With the ECB and BoC having eased policy, we suspect the RBA will also cut rates 25bp given the weak commodity backdrop and a deteriorating outlook for investment", said analysts at ING explained.
However, other analysts from Bank of America Merrill Lynch continue to expect that the RBA will keep policy rates on hold for all of 2015. " In our view, the outlook has not deteriorated materially since the RBA's December minutes retained its long held forward guidance that "the current stance of monetary policy continued to be appropriate for fostering sustainable growth in demand and inflation outcomes" and "that the most prudent course was likely to be a period of stability in interest rates.""
EUR/AUD has been making tracks to the upside of late, having been as low as 139.64 in the final stages of last month, and moving up through the ranks to post recent 1.4669 before consolidating between here in a wide range, supported at 1.4480/00.
The euro has not been a buyers choice of late, with the recent and unprecedented action from the ECB , but vs the AUD, markets are taking into consideration the likely requirement for easing from the RBA as soon as the forthcoming meeting tonight. "With the ECB and BoC having eased policy, we suspect the RBA will also cut rates 25bp given the weak commodity backdrop and a deteriorating outlook for investment", said analysts at ING explained.
However, other analysts from Bank of America Merrill Lynch continue to expect that the RBA will keep policy rates on hold for all of 2015. " In our view, the outlook has not deteriorated materially since the RBA's December minutes retained its long held forward guidance that "the current stance of monetary policy continued to be appropriate for fostering sustainable growth in demand and inflation outcomes" and "that the most prudent course was likely to be a period of stability in interest rates.""