Bearish
Bank of America forecasts further euro depreciation against the Australian dollar.
Bank of America anticipates continued euro weakness against the Australian dollar, citing the European Central Bank's (ECB) recent interest rate hike and the Reserve Bank of Australia's (RBA) higher cash rate. The ECB raised its deposit rate to 2.25% and the refinancing rate to 2.40% on June 17, 2026, while the RBA's cash rate stands at 4.35%. Additionally, the Australian dollar benefits from elevated commodity prices, further supporting its strength.
Key points
- Bank of America projects further euro depreciation against the Australian dollar.
- ECB raised deposit rate to 2.25% and refinancing rate to 2.40% on June 17, 2026.
- RBA's cash rate remains at 4.35%.
- Australian dollar supported by elevated commodity prices.
Sources
AI-generated from public news sources. Not financial advice.
