7 Feb 2014
Flash: Time to buy EUR/AUD - ANZ
FXStreet (Barcelona) - David Been, FX Strategist at ANZ feels that it is time for traders to consider buying EUR/AUD.
Key Quotes
“The recent improvement in domestic data, together with the RBA shifting to a neutral bias, has supported the AUD in recent weeks, but we remain strategically bearish.”
“Overnight the ECB struck a more neutral tone than anticipated as inflation remains low, but growth and lending conditions continue to improve.”
“Long EUR/AUD provides an opportunity to go short AUD with a good risk/reward profile. It should outperform in either an environment of rising US yields, or in one where risk aversion dominates. We initiate the trade at 1.52 with an initial target of 1.55. We see potential for it to extend towards 1.58, with a stop-loss at 1.50.”
Key Quotes
“The recent improvement in domestic data, together with the RBA shifting to a neutral bias, has supported the AUD in recent weeks, but we remain strategically bearish.”
“Overnight the ECB struck a more neutral tone than anticipated as inflation remains low, but growth and lending conditions continue to improve.”
“Long EUR/AUD provides an opportunity to go short AUD with a good risk/reward profile. It should outperform in either an environment of rising US yields, or in one where risk aversion dominates. We initiate the trade at 1.52 with an initial target of 1.55. We see potential for it to extend towards 1.58, with a stop-loss at 1.50.”