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23 Jan 2015
EUR/AUD capped at post ECB initial support
FXStreet (Guatemala) - EUR/AUD is currently trading at 1.4169 with a high of 1.4196 and a low of 1.4135 and up 0.03% on the day.
EUR/AUD has been capped out around 1.4185, the same area of where the pair spiked down to from 1.4320's on the ECB's announcement before continuing to 1.4057 lows. In the aftermath, the pair has managed to climb back on a decisive grind higher.
The ECB surprised markets with the amount of sovereign QE that will be implemented as of March this year until September 2016, on an open ended basis allowing the ECB to adjust to subsequent conditions. The Central Bank have committed to EUR60B per month. In recent trading, perhaps we are now starting to look at the RBA, and this could prevail as a weaker Aussie when we take the actions of the BoC as a possibility for the Australian economy - preventative rate cut in the face of deflationary pressures.
EUR/AUD has been capped out around 1.4185, the same area of where the pair spiked down to from 1.4320's on the ECB's announcement before continuing to 1.4057 lows. In the aftermath, the pair has managed to climb back on a decisive grind higher.
The ECB surprised markets with the amount of sovereign QE that will be implemented as of March this year until September 2016, on an open ended basis allowing the ECB to adjust to subsequent conditions. The Central Bank have committed to EUR60B per month. In recent trading, perhaps we are now starting to look at the RBA, and this could prevail as a weaker Aussie when we take the actions of the BoC as a possibility for the Australian economy - preventative rate cut in the face of deflationary pressures.