As with most currency pairs, The AUD/EUR has enjoyed a move higher over the last 72 hours on the back of a weaker USD globally. Inflation remains at the forefront of all market concerns, and the recent “slow down “in the USA CPI number has seen the USD weaken across the board, lending support to all other currencies. The pending winter energy crisis in Europe, amongst the ongoing Russia-Ukraine conflict, and the ever-increasing Western European sanctions all combine to increase the pressure on the general cost of living which will continue to keep the lid on any strong move higher in the EUR/USD. German Inflation data out during the week came in at a record 7.5 %, thus putting extra strain on the Regions most powerful economy. Australian Financial market activity has remained relatively subdued this week, with the China-Taiwan tensions in the region keeping people on edge. Some positive news from a surprisingly improved Australian business confidence figure, coupled with the softer USD, has meant the AUD/EUR cross ends the week on its highs, around .6850 level. This remains great buying levels short term with any move to .6900 worth a look for longer term hedging requirements.
Current Level: 0.6880
Resistance: 0.6910/0.6940
Support: 0.6790/0.6835
Last Weeks Range: 0.6808/0.6896