Listen to the latest market mood for the EURAUD pair.
Europe has falling COVID-19 cases. Germany’s COVID-19 threshold remains below the key threshold of R 1.0. Furthermore, a huge spending PEPP programme of around €1.35 trillion alongside a proposed Recovery Fund to support the most struggling EU members like Italy should keep the EUR supported. Next week European Leaders will be meeting to authorise what could be a huge stimulus package. Although the package has been well signalled it is not fully priced in.
Australia, in contrast, has been forced back into lockdown measures as COVID-19 cases rise in Australia’s second most populous state of Victoria.
Therefore, expect EURAUD buyers from market with stops under 1.6000 and a target for buyers of 1.6950.
Day trade outlook – We expect this trade to play out over the next three weeks.
- If the European Recovery Fund is rejected by the frugal four this will weaken the EUR and invalidate this outlook.
- Any fast fall in Australia COVID-19 cases would also invalidate this outlook.