The Australian Dollar (AUD), Euro (EUR) has bounced to all corners over the week, pushing higher to 0.6645 (1.5050) initially before risk sentiment pulled buyers out of AUD, the pair dropping to 0.6495 (1.5400) and back to 0.6550 (1.5270) into Friday. The RBA slowed the pace of their tightening policy Tuesday raising interest rates only 25 points to 2.6% from 2.35%, surprising markets as a 0.50% move was the more popular option. The RBA has pared back their peak in the RBA cash rate to 2.85% and will hike just one more time. With commodity prices predicted to fall in 2023 and the surge in construction costs to dissipate, the RBA also confirming benign wage growth pressures haven’t been an issue like other central banks are experiencing. We see heavy support at the 0.6500 (1.5400) level, past here the next support areas is 0.6170 (1.6200).
The current interbank midrate is: AUDEUR 0.6551 EURAUD 1.5264
The interbank range this week has been: AUDEUR 0.6486- 0.6645 EURAUD 1.5048- 1.5417