In the past couple of days the Australian Dollar (AUD), Euro has moved from 0.6880 (1.4540) to this morning’s 0.6800 (1.4710) as market risk tone deteriorates and equity markets return to recent lows. The Euro buoyed also by the ECB highlighting they will be ending their asset purchases program by the end of the 3rd quarter and hiking rates possibly in their July meeting. Inflation is only 2.9% at the moment, not exactly massive but with uncertainty in the Ukraine war causing huge supply chain issues and rising energy and consumer prices it’s predicted to go much higher. On the lookout next week is the French election and Australian quarterly CPI. We predict the pair to retrace moves to 0.6835 (1.4630) into the weekly close.
The current interbank midrate is: AUDEUR 0.6797 EURAUD 1.4712
The interbank range this week has been: AUDEUR 0.6790- 0.6878 EURAUD 1.4539- 1.4726