4 Aug 2015
EUR/AUD drops below 1.49
FXStreet (Mumbai) - The broad based strength in the AUD after the RBA statement pushed the EUR/AUD pair below 1.49 levels.
AUD buoyed by the change in RBA’s view
The buying interest in the AUD spiked as the latest RBA statement released today showed a major shift in the bank’s view on the exchange rate. Up until now, the bank was of the view that a further depreciation in the AUD is “necessary” and likely to happen.
However, the bank has ditched its highly successful strategy that had resulted in the steady fall in the AUD in last three months. The latest statement says, "the Australian dollar is adjusting to the significant declines in key commodity prices". Thus, doors are now open for correction in the AUD since the bank does not believe the depreciation is “necessary”.
With no major data due for release in the Europe today, the European desks may hit the pair with fresh offers later today.
EUR/AUD Technical Levels
The pair currently trades around 1.4890. The immediate resistance is located at 1.4962 (July 30 low), ahead of the major hurdle at 1.5067 (daily high). On the other hand, support is seen at 1.4850 and 1.4780 (July 9 low).
AUD buoyed by the change in RBA’s view
The buying interest in the AUD spiked as the latest RBA statement released today showed a major shift in the bank’s view on the exchange rate. Up until now, the bank was of the view that a further depreciation in the AUD is “necessary” and likely to happen.
However, the bank has ditched its highly successful strategy that had resulted in the steady fall in the AUD in last three months. The latest statement says, "the Australian dollar is adjusting to the significant declines in key commodity prices". Thus, doors are now open for correction in the AUD since the bank does not believe the depreciation is “necessary”.
With no major data due for release in the Europe today, the European desks may hit the pair with fresh offers later today.
EUR/AUD Technical Levels
The pair currently trades around 1.4890. The immediate resistance is located at 1.4962 (July 30 low), ahead of the major hurdle at 1.5067 (daily high). On the other hand, support is seen at 1.4850 and 1.4780 (July 9 low).