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Sean Callow, analyst at Westpac, suggests that they see scope for AUD to extend recent gains to the EUR 0.6350/0.6400 or AUD 1.5625/1.5750 area multi-week.

Key Quotes

“AUD has made modest gains against the euro in recent weeks, broadly correlating with improved global risk sentiment as the FOMC hit pause in its tightening cycle.”

“Interest rate markets’ moves to price in RBA easing in response to Australia’s cooler growth outlook have had limited impact against the euro, given the protracted Eurozone growth slowdown.”

“Still, AUD seems to have more upside potential multi-week, with a US-China trade deal of some description likely, commodity prices supportive and Australian data more likely to cool than to inflame RBA rate cut pricing.”