EUR/AUD: headed to 1.47 / 1.49 March – Westpac

By FXStreet FXStreet (Guatemala) – Sean Callow, analyst at Westpac noted conditions surrounding EUR/AUD in a cross trade.

Key Quotes:

“EUR/AUD remains above the early Dec lows as AUD retains an increased risk premium linked to China’s growth outlook, while investors remain wary about dovish ECB rhetoric, given the disappointment over the Dec 2015 easing steps.”

“Market fears over China 1.54 are hardly likely to disappear in coming weeks, limiting AUD recovery from the January selloff. But with China making renewed efforts to calm local markets, we don’t expect a repeat of the Jan risk aversion in the weeks ahead. A steady RBA also helps AUD”

“Moreover, ECB president Draghi should be able to deliver sufficient easing in March to produce fresh EUR selling. This should see EUR/AUD back to 1.47-1.49 in March.”
For more information, read our latest forex news. …read more

Source:: FX Street