The ECB raised rates last week to 4.25% which was fully locked in, rallying the Euro (EUR) through to 1.6570 (0.6035) areas against the Australian Dollar (AUD). Lagarde said the bank was undecided as to whether they will need to hike further or hold at their next meeting in September. We think that with sticky inflation and strong wage growth could support one further hike towards the end of the year. Monday’s price action saw the cross back towards 1.6360 (0.6110) heading into today’s sessions, a retest of the bottom of the recent range at 1.6250 (0.6155) is our bet this week. All eyes will be on the RBA rate decision today, the central bank widely expected to hike from 4.10% to 4.35%.
Current Level: 0.6110 (1.6366)
Resistance: 0.6155 (1.6570)
Support: 0.6035 (1.6245)
Last Weeks Range: 0.6032-0.6150 (1.6260-1.6577)