As we predicted last week we have seen further buying of EUR with price reaching a fresh low of 1.6600 (0.6025) mid last week against the Australian Dollar (AUD) a 3-month low. The Aussie fought back off the Monday open to trade back at 1.6400 (0.6100) levels after eurozone manufacturing and services data came in poor. Australian CPI y/y prints Wednesday and is predicted to come way down off the current 7.0% to around 5.5% forecast, anything higher than this could spike the AUD. This is followed by the ECB refinancing rate Thursday evening when we expect the ECB to hike 25 points to 4.25%. Comments should be hawkish around further policy tightening required. We expect the pair could retest 0.6000 (1.6660) areas.
Current Level: 0.6080 (1.6447)
Resistance: 0.6160 (0.6780)
Support: 0.6040 (1.6230)
Last Weeks Range: 0.6023-0.6105 (1.6380-1.6602)