EUR/AUD was around 1.56 on the eve of Russia’s invasion of Ukraine. Its slide extended to near 1.43 by April. Economists at Westpac believe that the pair could race higher towards 1.52/53 in the short-term before turning back lower to the 1.45 area by the third quarter.
EUR/AUD could push up to 1.52/53 near-term
“Markets price the RBA cash rate above 2.50% by end-2022 versus 0.45% for the ECB key rate.”
“Given the currently fragile global risk mood including concerns over China, EUR/AUD could push up to 1.52/1.53 near-term. But we expect the aussie’s fundamentals to help the pair return to 1.45 during Q3.”
This article was originally published by Fxstreet.com. Read the original article here.