The Euro (EUR) has rallied to 0.6720 (1.4880) Thursday against the Australian Dollar (AUD) extending early week gains before settling this morning around 0.6755 (1.4800). The European Central Bank hiked their cash rate 75 points to 1.25% overnight joining other central banks in the fight against rising inflation, they signalled they would hike again in the coming months. The ECB is predicted to be at 1.75% early in 2023 but they may pause for a while if looming recession fears become a reality. Earlier the RBA hiked their interest rate by 50 points to 2.35% – the fifth consecutive hike from May 3rd this year, some are arguing this is too much too quick and could tip the economic balance into recession quicker. Momentum in the pair is still to the downside with ongoing Eurozone energy issues.
The current interbank midrate is: AUDEUR 0.6756 EURAUD 1.4801
The interbank range this week has been: AUDEUR 0.6719- 0.6865 EURAUD 1.4566- 1.4881