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15 Apr 2015
AUD outlook vs EUR: Volatility ahead but broad ranges intact – Westpac
FXStreet (Barcelona) - Sean Callow of Westpac, expects the fundamental data risk ahead to keep EUR and AUD volatile, and with any sustained gains against the USD unlikely, the outlook for AUD vs the EUR remains range-bound.
Key Quotes
“Neither AUD nor EUR is likely to make consistent gains versus USD in coming weeks, keeping the cross rate mostly within recent (rather wide) ranges, roughly AUD/EUR 0.69-0.73, EUR/AUD 1.37-1.45.”
“However volatility should continue with both Australia and the Eurozone facing a crowded calendar of event risk through May.”
“Big picture, the ECB’s expanded QE program should keep chipping away at EUR. While commodity prices should keep a lid on AUD gains multi-month, Westpac expects a pause on monetary policy after a cut in May. This should see AUD tend to the stronger side of ranges versus EUR into mid-year but the basic picture is volatility within familiar territory.”
Key Quotes
“Neither AUD nor EUR is likely to make consistent gains versus USD in coming weeks, keeping the cross rate mostly within recent (rather wide) ranges, roughly AUD/EUR 0.69-0.73, EUR/AUD 1.37-1.45.”
“However volatility should continue with both Australia and the Eurozone facing a crowded calendar of event risk through May.”
“Big picture, the ECB’s expanded QE program should keep chipping away at EUR. While commodity prices should keep a lid on AUD gains multi-month, Westpac expects a pause on monetary policy after a cut in May. This should see AUD tend to the stronger side of ranges versus EUR into mid-year but the basic picture is volatility within familiar territory.”