The Australian Dollar (AUD) clocked a fresh 6 week high of 0.6007 (1.6645) against the Euro (EUR) but couldn’t hold here dropping back to 0.5980 (1.6715), clearly the cross is not ready to make a move above the key 0.6000 level just yet. Chances of the ECB raising rates this Thursday from the current 4.25% have eased to around 40% from mid August’s 60%. We see chances of a hike in the 4th quarter at 70% depending on how CPI prints. Expectations are for decent drops in both September and October. Direction this week in the cross will mostly come from the ECB.
Current Level: 0.5981
Last Weeks Range: 0.5919- 0.6006