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15 Oct 2014
AUD vs EUR to push on up in weeks to come - Westpac
FXStreet (Guatemala) - Sean Callow, analyst at Westpac Banking Corporation ABN suggested that while the Aussie's short term risks are to the downside, they suspect AUD will push higher in coming weeks.
Key Quotes:
"...backed by improved commodity demand and a stable RBA rate outlook".
“EUR has enjoyed short-covering demand since the ECB fell short of market hopes in October and this could provide enough fuel for a brief test under AUD/EUR 0.68/rise to EUR/AUD 1.47”.
“But the weak Eurozone economy will place renewed pressure on the ECB in coming weeks”.
“We see scope for both AUD and EUR to gain versus USD multi-week, but with somewhat more upside on AUD”.
“This should see AUD recover to around AUD/EUR 0.6950-0.7000 or EUR/AUD 1.43-1.44”.
Key Quotes:
"...backed by improved commodity demand and a stable RBA rate outlook".
“EUR has enjoyed short-covering demand since the ECB fell short of market hopes in October and this could provide enough fuel for a brief test under AUD/EUR 0.68/rise to EUR/AUD 1.47”.
“But the weak Eurozone economy will place renewed pressure on the ECB in coming weeks”.
“We see scope for both AUD and EUR to gain versus USD multi-week, but with somewhat more upside on AUD”.
“This should see AUD recover to around AUD/EUR 0.6950-0.7000 or EUR/AUD 1.43-1.44”.