EUR/AUD remains bid above 1.49, eyes ECB minutes

EUR/AUD clocked a session high of 1.4940 in Asia as the dovish comments from the RBA’s Harper overshadowed the upbeat Aussie trade data. 

RBA’s Ian Harper downplayed the need to join the hawkish chorus from other central banks and said a lower AUD would be beneficial for the economy. "It would help us along our way". The dovish comments could be the reason why the Aussie 10-year bond yield and the AUD failed to strengthen after the release of the stellar Australia May trade surplus data. 

Focus on ECB minutes

Minutes of the ECB's June meeting due at 11:30 GMT, should provide further clues on how far the tapering debate has gone in Europe. ECB’s Peter Praet is scheduled to speak today at 10:00 GMT. The policymaker is likely to reiterate Tuesday’s comments - ECB’s “mission is not yet accomplished”. 

The EUR could come under pressure if the ECB minutes show the policymakers still favor an ultra accommodative monetary policy. 

EUR/AUD Technical Levels

The cross was last seen trading around 1.4930. A break above 1.4966 (previous day’s high) would open doors for 1.4998 (June 28 high). On the downside, breach of support at 1.4892 (5-DMA) would expose 1.4862 (50-DMA).