FXStreet (Delhi) – Sean Callow, Research Analyst at Westpac, gives her strategic view on the EUR positioning.
Key Quotes
“Event risk: Another important data week ahead, starting with Oct retail sales on Fri. Nov NAB business confidence is due Tue, Westpac Dec consumer sentiment on Wed. Oct housing finance is also due Wed. The data highlight is Nov labour force on Thu, for a likely correction from the Oct jobs surge.
Bias: AUD/USD should continue to find support on dips given the unusually large M&A pipeline into Australia, broadly positive domestic data reinforcing the RBA’s steady hand and potential spill over from EUR carry trades post-ECB easing.
Local data in the week ahead is not threatening for AUD. Dips should be limited to 0.7160/80 on the week. But 0.7380 remains strong resistance, especially in light of fresh multiyear lows on key commodity prices. AUD/NZD should have a good day Thursday on an RBNZ rate cut but is otherwise underwhelming.”
(Market News Provided by FXstreet)