The Australian Dollar (AUD), Euro (EUR) pair turned sharply Thursday off 0.6600 (1.5160) the low of the week as optimism waned in the Ukraine-Russian talks failed to produce progress. European Equity indices reversed a massive 5-7% on headline news. The European Central Bank said it would phase out bond buying sooner than predicted by September, carving a path for interest rate hikes later the year. The problem the ECB faces is possible stagnation as the ECB concentrates on high inflation at the detriment of growth. Mid-morning prices are still supporting the Aussie as the cross travels through 0.6705 (1.4915), we could see a possible retest of 0.6755 (1.4800) but this area should hold.
Exchange Rates:
The current interbank midrate is: AUDEUR 0.6682 EURAUD 1.4965
The interbank range this week has been: AUDEUR 0.6598- 0.6870 EURAUD 1.4554- 1.5156