The poor Euro (EUR) “hasn’t had a look in” this week extending declines against the Australian Dollar (AUD) to 0.7000 (1.4290) in morning trading. The first time we have seen 0.70 the big figure in the pair since April 2017. We have a way to go before we see the 2013 high of 0.7360 but anything is possible with ongoing Eurozone inflation and energy price rises expected to continue. Poor eurozone PMI has analysts weighing in on the possibility this will underpin a likely recession. Meanwhile the ECB minutes confirmed a hike of 50 points is likely at the September meeting over the previously indicated 25 points. Traders seem happy to position for further drops in the cross with key event risk supporting the AUD.
The current interbank midrate is: AUDEUR 0.6991 EURAUD 1.4304
The interbank range this week has been: AUDEUR 0.6845- 0.7005 EURAUD 1.4277- 1.4606