8 Apr 2015
EUR/AUD: Downside pressures mount ahead of FOMC minutes
FXStreet (Guatemala) - EUR/AUD is currently trading at 1.4166 with a high of 1.4173 and a low of 1.4142.
EUR/AUD is recovering from the deep drop that took the cross down through the 1.42 handle and out of bullish territory despite the RBA's continued hold and see policy. The greenback made a come back post last weeks dismal NFP's results leaving the euro exposed. However, this leaves the May meeting as a potential time frame for further easing as analyst, Sean Callow, at Westpac Banking Corporation suggested.
"Westpac looks for the RBA to cut the cash rate to 2% in May and expects markets to keep leaning towards further easing, capping AUD on crosses. But short term the meeting was a positive for AUD and if the FOMC minutes today are a little dovish as expected then AUD/USD should find good support on dips today." Technically, this adds to the downside exposure in the cross with 1.41 first hurdle for the bears ahead of 1.4040 support.
EUR/AUD is recovering from the deep drop that took the cross down through the 1.42 handle and out of bullish territory despite the RBA's continued hold and see policy. The greenback made a come back post last weeks dismal NFP's results leaving the euro exposed. However, this leaves the May meeting as a potential time frame for further easing as analyst, Sean Callow, at Westpac Banking Corporation suggested.
"Westpac looks for the RBA to cut the cash rate to 2% in May and expects markets to keep leaning towards further easing, capping AUD on crosses. But short term the meeting was a positive for AUD and if the FOMC minutes today are a little dovish as expected then AUD/USD should find good support on dips today." Technically, this adds to the downside exposure in the cross with 1.41 first hurdle for the bears ahead of 1.4040 support.