Back
3 Dec 2014
EUR/AUD steady on the bid post further blows to the Aussie
FXStreet (Guatemala) - EUR/AUD is trading at 1.4734, up 0.53% on the day, having posted a daily high at 1.4756 and low at 1.4631.
EUR/AUD has made fresh highs on the GDP results and miss for the Australian economy and rests steady over a cent higher on the Asian session. The miss in these results is yet another blow to the Aussie and pressures are mounting day in and day out on the currency, which is of course in line with the RBA’s preference.
That preference, in terms of fair value, has still not been voiced by any Central Bank officials while there has been a big shift in global commodity currencies since last calling their preferable level to the dollar last November as 0.8500 when iron ore was at $135 a tonne; it now trades in the region of $71 a tonne.
Looking ahead, there are conflicting view points around the RBA’s course of action. Some analysts are beginning to call for as many as two interest rate cuts in the Australian cash rate in 2015 while others suggest the bank will remain on hold into the middle of 2015 at least and perhaps even make a rate hike.
EUR/AUD has made fresh highs on the GDP results and miss for the Australian economy and rests steady over a cent higher on the Asian session. The miss in these results is yet another blow to the Aussie and pressures are mounting day in and day out on the currency, which is of course in line with the RBA’s preference.
That preference, in terms of fair value, has still not been voiced by any Central Bank officials while there has been a big shift in global commodity currencies since last calling their preferable level to the dollar last November as 0.8500 when iron ore was at $135 a tonne; it now trades in the region of $71 a tonne.
Looking ahead, there are conflicting view points around the RBA’s course of action. Some analysts are beginning to call for as many as two interest rate cuts in the Australian cash rate in 2015 while others suggest the bank will remain on hold into the middle of 2015 at least and perhaps even make a rate hike.