The Australian Dollar (AUD) mostly traded around the 0.6745 (1.4830) area over the week against the Euro (EUR) consistent with last week’s low-key moves. The ECB raised their cash rate 50 points overnight, lifting the rate to zero for the first time in 8 years and the first time they have raised rates in 11 years. European banks will no longer receive interest on consumer deposited funds. The ECB unveiled a plan to buy debt of Europe’s most valuable economies as it takes aggressive action to bring down skyrocketing inflation and slowing economic growth. The news weakened the EUR, improving the Aussie to a new high of 0.6785 (1.4740), an early May high. Looking ahead to next week we have key Aussie Q CPI Wednesday.
The current interbank midrate is: AUDEUR 0.6778 EURAUD 1.4753
The interbank range this week has been: AUDEUR 0.6710- 0.6787 EURAUD 1.4732- 1.4907