Bearish
EUR/AUD trades at 1.6170, down 0.15% amid Australian inflation concerns.
In the past 24 hours, EUR/AUD has declined by 0.15%, closing at 1.6170. This movement is primarily driven by Australia's higher-than-expected July inflation, which has intensified expectations of an imminent interest rate hike by the Reserve Bank of Australia (RBA). The anticipated rate increase is expected to bolster the Australian Dollar, exerting downward pressure on EUR/AUD.
Key points
- Goldman Sachs forecasts a 25 basis point rate hike by the RBA in November, raising the cash rate to 4.60%.
- EUR/AUD is trading near its 8-day exponential moving average (EMA), indicating a consolidation phase.
- Morgan Stanley projects EUR/AUD to decline to 1.53, citing the Australian Dollar's yield advantage and low implied volatility supporting carry trades.
Sources
AI-generated from public news sources. Not financial advice.
