The Australian Dollar (AUD) dropped to 0.6020 (1.6620) Friday against the Euro (EUR) after succumbing to a risk off market tone in the wake of global recession risks. It has bounced back Monday to 0.6040 (1.6560) and should improve if commodity markets correct higher over the week. The European Central Bank (ECB) announce their cash rate Friday night and are widely predicted to drop their interest rate from 4.25% to 3.65% or 50 points following their 25-point cut in June. Eurozone inflation is certainly improving, cooling from 2.6% in July to 2.2% in August. We fancy a retest of support at the 0.6100 (1.6400) level.
Current Level: 1.6586
Resistance: 1.6700
Support: 1.6450
Last Weeks Range: 1.6281- 1.6626